LSAT 133 | Section 3 | Logical Reasoning: Q7

LR Question 7 Explanation

QUESTION TEXT: Economic growth accelerates business demand for the…

QUESTION TYPE: Most Strongly Supported

FACTS:

1. Economic growth accelerates demand for new technologies.
2. Few businesses supply those technologies while many businesses want to buy them.
3. Increased technological change can cause suppliers of technologies to fail.

ANALYSIS: Rapid change can doom many companies, even high tech companies. You may be very good at building a new technology. But if conditions change then maybe no one will want to buy your product anymore. If you don’t adapt fast enough then you may go out of business.

___________

1. Hard to say. It could be that some businesses are even more likely to prosper. The stimulus hasn’t told us about prospects for all other businesses.
2. CORRECT. Economic growth causes demand for new technology to rise. That can presumably lead to accelerated technological change. That can cause failure amongst businesses that supply new technologies.
3. Hard to say. Economic growth causes demand for technology. We don’t know if the reverse occurs.
4. Not quite. It is businesses that sell new technologies that are more likely to prosper.
5. We only know that some business can fail: a few businesses that supply technology. We don’t know if overall business failures are increased. Technological change might make some other businesses less likely to fail.