Assumption or Strengthen Question? Why is D not correct?

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Sales at a local sandwich shop have been declining steadily since a health food restaurant opened its doors for business on the same block three months ago. The owner of the sandwich shop concludes that the best way to raise sales back to prior levels is to offer special sandwich prices that compete with the low prices at the health food restaurant.

Which of the following assumptions helps to justify the owner's conclusion?

A) Local consumers prefer the food at the sandwich shop to the food at the health food restaurant.

B) Sales at the sandwich shop reached an all-time high six months ago.

C) The sandwich shop's prices are currently higher than those of a similar shop located in a neighboring town.

D) The sandwich shop does not currently offer any healthful food items.

E) The health food restaurant is running its special prices as a temporary promotion and will be raising its prices at the end of the year.

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by [email protected] » Fri Sep 12, 2014 12:54 pm
Hi Rastis,

This CR prompt is based on a PLAN, so we need to understand the plan and choose an answer that makes the plan more likely to succeed.

The Facts:
-Sales at a local sandwich shop have been declining
-A health food restaurant opened on the same block 3 months ago.

Intermediate Conclusion:
-The health food restaurant is responsible for the decline in business at the sandwich shop.

The Plan:
-The best way to RAISE SALES BACK TO THEIR PRIOR LEVELS is to offer special sandwich PRICES that COMPETE with the low prices at the health food restaurant.

The Logic:
The owner is clearly focused on PRICE, but the plan is to reprice his sandwiches to "compete" with prices at the health food store. To RAISE his sales, the owner thinks that diners will come back to his sandwich shop (or perhaps buy more per capita). If the prices are essentially the same at both shops, then WHY would a buyer come back to the sandwich shop? There must be some other reason that would affect their decision-making processes. That reason will be the correct answer.

Answer A is the only one that provides an explanation for why diners would come back to the sandwich shop. If the prices are equivalent, then this reason will get diners to come back.

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by David@VeritasPrep » Mon Sep 15, 2014 2:31 am
To answer your question - this is a STRENGTHEN question, not an assumption. The question stem is worded in a confusing way. The word assumption in this question merely indicates that we should take the answer choice as true, something that you always do on strengthen questions anyway.

The key wording here is "helps to justify the owner's conclusion." Official GMAT questions often use the word "Justify" in strengthen questions - and that is what this is.


I agree with Rich in looking at this as a Strengthen the Plan question.

When working with a Plan question always focus on the PLAN and the GOAL.

Here the PLAN is to offer special (lower) sandwich prices. and the GOAL is to raise sales (back to prior levels).

You want an answer that indicates that lowering prices will result in increased sales. Choice D is not a possible answer here because if the sandwich shop has no healthy food items then even lowering prices may not boost sales, given that consumers may be going to the health food shop because they want healthy food! So D is the opposite of what you want.

You want an answer choice that basically indicates that prices are the one thing that are keeping people from buying at the sandwich shop. Choice A gives you that indication. if people prefer the food at the sandwich shop then lower prices should bring them back!
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by Rastis » Mon Sep 15, 2014 6:10 am
Thank you, Rich and Dave!