LSAT 6 | Section 3 | Logical Reasoning: Q24

LR Question 24 Explanation

QUESTION TEXT: Rumored declines in automobile-industry revenues are…

QUESTION TYPE: Flawed Reasoning

CONCLUSION: Auto-industry revenues are not in decline

REASONING: The revenue shares of different auto industry participants have shifted.

ANALYSIS: This argument merely tells us how revenues are distributed within the auto industry. It tells us how the pie is cut. It doesn’t tell us how big the pie is: overall industry revenues still could have fallen.

No matter how you distribute them, revenues within an industry add up to 100% of the total revenues for that industry.

___________

1. There is no source given for any statistics. But even if all the statistics are accurate this isn’t a good argument.
2. CORRECT. Yes. See the above discussion.
3. We don’t need an explanation. The argument is only talking about changes in revenue; they aren’t talking about why revenues changed.
4. That’s an interesting tidbit of info about the auto industry. Unfortunately it tells us nothing about whether overall revenues fell or stayed the same.
5. That may be. But the stimulus was only talking about revenues, not profits.

Recap: The question begins with “Rumored declines in automobile-industry revenues are”. It is a Flawed Reasoning question. Learn more about LSAT Flaw questions in our guide to LSAT Logical Reasoning question types.