LSAT 111 | Section 3 | Logical Reasoning: Q24

LR Question 24 Explanation

QUESTION TEXT: Tony: A new kind of videocassette has just been…

QUESTION TYPE: Strengthen

CONCLUSION: Tony concludes that the new videocassettes will save video stores money.

REASONING: The cassettes wear out twice as fast but cost only a third as much.

ANALYSIS: Anna is assuming that movie studios will blindly demand the same royalty rate even though the new cassettes wear out faster. But studios might adapt to reality.

A lot of the wrong answers deal with consumers or with retail (in store) prices. These are irrelevant. Tony is talking about the costs the rental stores pay. He’s not talking about the price paid by consumers.

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1. The retail price is irrelevant. We want to know if video stores can end up paying less by changing cassette tapes.
2. This doesn’t help. Tony’s proposal would increase this percentage. And if Anna is right it would cost video stores more money too. 
3. CORRECT. The studio might change their royalty fees to account for how fast the new type of cassette wears out. It would be sensible. If this is true then the rental stores could save money on cassette costs while paying no more in royalties. 
4. Tony’s argument has nothing to do with consumers. 
5. This might weaken Tony’s argument slightly since the new cassette tapes wear out faster.