Platinum is a relatively rare metal vital to a wide variety of industries. Xagor Corporation, a major producer of platinum, has its production plant in a country that will soon begin imposing an export tax on platinum sold and shipped to customers abroad. As a consequence, the price of platinum on the world market is bound to rise.

Which of the following, if true, tends to confirm the conclusion above?

Correct answer marked below

An inexpensive substitute for platinum has been developed and will be available to industry for the first time this month.

The largest of the industries that depend on platinum reported a drop in sales last month.

The producers of platinum in other countries taken together cannot supply enough platinum to meet worldwide demand.

Correct

Xagor produced more platinum last month than in any previous month.

New deposits of platinum have been found in the country in which Xagor has its production plant.

You can see the correct answer above. Sign in for free to unlock the complete worked solution.

Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.

Explanation

Create a free account to reveal the correct answer, see the step-by-step explanation, and start tracking your GMAT progress.

Comments

RaghavSep 6

Easy one. C basically says no other country can fill the gap, so if Xagor's exports get taxed, supply tightens and price goes up. Makes sense.

Sri6d ago

wait why is A wrong? wouldn't a cheaper substitute mean less demand for platinum and lower prices?

Nikhil4d ago

yeah exactly, that would weaken the conclusion, not support it. we need something that keeps demand high or supply low.

TanishaAug 17

Thanks, this one was quick. The export tax angle is interesting.

SivamanojSep 2

got C pretty fast but B and D felt like filler. D actually would suggest more supply which is the opposite of what we want right?

GirirajSep 16

correct, D is irrelevant or slightly weakening since more production could mean more supply. B is just a distraction about one industry's sales.

What this question tests

Whether you can identify the option that most bolsters an argument's conclusion.

Choosing an option that is consistent with the argument but adds no new support, or that shifts the topic.