A car manufacturer periodically discounts certain car models to its dealers to coincide with intensive advertising campaigns focused on those cars. After analyzing the results of this program, the manufacturer found that sales of the discounted cars was strong, but it also concluded that it could reap greater profits if it did not hold promotions in this way.
Which of the following statements, if true, best accounts for the manufacturer's conclusion about profitability?
A. Some consumers worry that discounted cars are more likely to be defective.
B. The car manufacturer had not been effective in controlling the production costs of the cars, and these rising costs ate into the manufacturer's profits.
C. Although dealers requested large numbers of the cars at discounted prices, they generally sold the cars at the normal retail price, thereby keeping more of the profit for themselves.
D. Many consumers buy large-ticket items, such as cars, only when they are on sale.
E. The manufacturer's intensive advertising campaign did not sufficiently emphasize the cars' high levels of performance on road tests.
OA C
Source: Princeton Review
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A car manufacturer periodically discounts certain car models
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Here, we need to find what led to the conclusion provided by the manufacturer.
Premise: periodic discounts were given to certain car models as to coincide with advertising campaigns on those cars.
Option A - Incorrect
This doesn't account for the conclusion because if true that the consumers worry about the cars being defective, then there will be fewer sales and won't reap greater profits.
Option B - Incorrect
Well, this doesn't seem to perfectly cohere with the subject matter of the argument, so it cannot account for the manufacturers' conclusion.
Option C - Correct
This can account for the increased profits even without promotions due to the sale of cars at the normal retail price.
Option D - Incorrect
This does not explain how the discount in the sales of cars at the normal retail price.
Option E - Incorrect
The argument doesn't support the use of advertisement to be the reason for the strong sales.
Premise: periodic discounts were given to certain car models as to coincide with advertising campaigns on those cars.
Option A - Incorrect
This doesn't account for the conclusion because if true that the consumers worry about the cars being defective, then there will be fewer sales and won't reap greater profits.
Option B - Incorrect
Well, this doesn't seem to perfectly cohere with the subject matter of the argument, so it cannot account for the manufacturers' conclusion.
Option C - Correct
This can account for the increased profits even without promotions due to the sale of cars at the normal retail price.
Option D - Incorrect
This does not explain how the discount in the sales of cars at the normal retail price.
Option E - Incorrect
The argument doesn't support the use of advertisement to be the reason for the strong sales.
