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Spot the question type - Necessary Assumption
Core argument structure
P1: USA Gov attempted to restore the computer chip market to USA producers, which had ceased production due to the abundant supply of cheap chips from foreign producers.
P2: Under trade protections, it was expected that as imposing the quotas and excising taxes could forced the price of foreign chips to rise, and then USA producer will be reenter the market.
P3: They did, but at only slightly lower prices that the now high prices of foreign firms.
P4: Trade protection means that USA manufactures gain while USA consumer gain while USA consumer lose
C: Trade protection is bad.
um... Please don't be hustled by the long question here. The apparent flaw here is simple, the author assumed what happened at the industry of microchips could be sufficiently guarantee what would happened at the other industry.
A. Negate it. It is what happened. Prices of USA product is actually lowered than oversea products
B. Negate it, regardless of the fact that whether USA producers are " not more " or " more concerned with high profit does not necessary here. The figure of the price does not guarantee the profit of the price.
C. Negate it, whether its primary or not primary does not really destroy the argument.
D. Correct answer, if microchip industry is not representative of USA industry in general, then it is not sufficient enough to guarantee that all of " USA producer will gain more producer surplus "
E. Its not really relevant to the core of the argument. If you believe this is the correct answer, you must be assuming that consumers will buy only if its better quality.
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