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For a ten-month period, the total monthly sales

Expert replies
by BTGmoderatorDC » Sat Jul 07, 2018 2:11 am

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty

For a ten-month period, the total monthly sales of new cars within the country of Calistan remained constant. During this period the monthly sales of new cars manufactured by Marvel Automobile Company doubled, and its share of the new car market within Calistan increased correspondingly. At the end of this period, emission standards were imposed on new cars sold within Calistan. During the three months following this imposition, Marvel Automobile Company's share of the Calistan market declined substantially even though its monthly sales within Calistan remained constant at the level reached in the last month of the ten-month period.

If the statements above are true, which one of the following CANNOT be true?

(A) The total monthly sales within Calistan of new cars by companies other than Marvel Automobile Company decreased over the three months following the imposition of the emission standards.

(B) Over the three months before the imposition of the emission standards, the combined market share of companies other than Marvel Automobile Company selling new cars in Calistan decreased.

(C) If the emission standards had not been imposed, Marvel Automobile Company would have lost an even larger share of the number of new cars sold in Calistan than, in fact, it did.

(D) A decrease in the total monthly sales of new cars within Calistan will occur if the emission standards remain in effect.

(E) Since the imposition of the emission standards, Marvel Automobile Company's average profit on each new car sold within Calistan has increased.
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Source: — Critical Reasoning |

by deloitte247 » Thu Jul 12, 2018 11:40 pm
Option A - INCORRECT.
This statement is true. Over three months now, the monthly sales of new cars by company within calistan country other than Marvel Automobile company has reduced, following the imposition of emission standards.

Option B - INCORRECT.
This option is true with its statement. Over the past three months before the imposition of emission standard, the combined market share of sales of new cars by company other than Marvel Automobile company in calistan country has decreased.

Option C - INCORRECT.
This might be an assumption but it can be proven. Following the doubled sales of new cars by Marvel Automobile company within the past few months, it can be categorically said that if there is no such thing as imposition of emission standard from the last three months , then Marvel Automobile company would have lost an even larger share new cars sold compared to other manufactures in calistan country.

Option D - INCORRECT.
This option is also true. Aside the poor sales of new cars experienced by manufacturers before the imposition of emission standard in calistan, a more critically level of poor sales would be experienced if the emission standard remains effective.

Option E - CORRECT.
Aside this option being an assumption of fact but it is a fact that can be proven and cannot be true. Since the imposition of emission standard, it has been proven that there is a decrease in sales of new cars, and this will affect the monthly profit gathered by car manufacturers in calisban country, which Marvel Automobile is also going to be affected too.
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