Free GMAT Practice Question

Question 1 of 1
ID: GMAT-CR-010
Section: Verbal Reasoning - Critical Reasoning (CR)
Topic: Evaluate the Argument
Difficulty level: Challenging

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The demand for large, family-sized vehicles will slump dramatically over the next ten years. Steel plating is a component used in these vehicles, and to obtain maximum price reduction on it, major automobile companies order it five years in advance of delivery, but they are postponing orders now.

Which of the following must be evaluated to validate the decision made by the major automobile companies?

AWhether the other components used in these vehicles have been ordered well in advance.

BWhether the other components used in these vehicles are in short supply.

CWhether the price of steel plating would rise significantly over the years.

DWhether these companies cannot resell steel plating to other automobile companies at a bearable loss.

EWhether the demand for small-sized vehicles will also slump dramatically over the next ten years.

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