In getting CR questions right, nothing is more valuable than clearly understanding the prompt and identifying the conclusion. From doing those things all else follows.
Conclusion: it is likely that the level of overall sales of cereal will rise significantly
Why? Because of the following.
- Overall sales of cereal have recently begun to drop because of price increases.
- Now one manufacturer has reduced wholesale prices and others have said they will follow suit.
So the idea is that prices will decline, and that therefore sales, which had decreased because of price increases, will increase.
Now that we are super clear about the prompt and its conclusion, let's look at the answer choices.
A. Whether the high marketing expenses of the highly competitive cereal market led to the increase in cereal prices
We really aren't concerned with what caused the price increase, only about anything that indicates that the decrease in wholesale prices will lead to an increase in sales.
B. Whether cereal manufacturers use marketing techniques that encourage brand loyalty among consumers
While this answer choice sounds as if it says something, does what it says indicate whether decreasing prices will result in increased sales? No.
C. Whether the variety of cereals available on the market has significantly increased over the last 10 years
This is a trap answer. You start thinking that an increased variety is a factor in the sales decrease and that it will be a factor affecting the likelihood of a sales increase, but we are not concerned with an increase in the sales of any particular variety, but rather with the likelihood of an increase in sales of cereal in general. So this seemingly interesting answer choice is completely irrelevant.
D. Whether the prices that supermarkets charge for these cereals will reflect the lower prices the supermarkets will be paying the manufacturers
Well look at that. We are hoping a wholesale price decrease will result in increased sales, but will a wholesale price decrease result in a retail price decrease? That's a key question, because the consumers will pay the retail price not the wholesale price.
E. Whether the sales of certain types of cereal have declined disproportionately over the last 10 years
Once again, we are concerned not with the sales of certain types of cereal but with the sales of cereal in general.
So the correct answer is the only one that is at all relevant, choice D.
