In Washington County, attendance at the movies is just
large enough for the cinema operators to make
modest profits. The size of the county's population is
stable and is not expected to increase much. Yetthere
are investors ready to double the number of movie
screens in the county within five years, and they are
predicting solid profits both for themselves and for the
established cinema operators.
Which of the following, if true about Washington
County, most helps to provide a justification for the
investors' prediction?
(A) Overthe next ten years, people in their teenage
years, the prime moviegoing age, will be a
rapidly growing proportion of the county's
population.
(B) As distinct from the existing cinemas, most of
the cinemas being planned would be located in
downtown areas, in hopes of stimulating an
economic revitalization of those areas.
(C) Spending on video purchases, as well as
spending on video rentals, has been increasing
modestly each year for the past ten years.
(D) The average number of screens per cinema is
lower among existing cinemas than it is among
cinemas still in the planning stages.
(E) The sale of snacks and drinks in cinemas
accounts for a steadily growing share of most
cinema operators' profits.'
I dont understand how A can be correct here . It says teenage population will be substanstial proportion in "OVER 10 years" wheras the investor's plan predicts solid profits within 5 years.
Should there not be some other reason why the plan would work?
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You read something that it didn't say. That's one way people get smoked on CR.I dont understand how A can be correct here . It says teenage population will be substanstial proportion in "OVER 10 years" wheras the investor's plan predicts solid profits within 5 years.
Should there not be some other reason why the plan would work?
Where does it say they expect solid profits within 5 years? Nowhere.
It says they are "ready to double the number of movie screens" within five years. For all we know, they expect returns to then accrue over the following twenty years.
Also, it does not say that teenagers will be a substantial proportion in over ten years. It says that over, meaning during, the next ten years that proportion will be growing. That indicates that in five years it will likely have grown some.
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