Premises: Everyone is selling more phones.
Conclusion: Mammoth will produce more Mammoth phones, and continue to advertize them. This will take advantage of increase -
Question stem: which AC says that Mammoth will NOT increase sales?
Analysis: apparently, mammoth believe that they can make more phones than they currently do and still find a market for them - everyone is selling more phones right now. In order to prove them wrong (show that sales will not increase), we need to find a reason or indication that mammoth's phone will NOT sell.
A - share may drop, but there may still be demand for more sales of mammoth phone. the share may be dropping just because the competitors are doing slightly better than M itself. possible answer choice, but weak.
B irrelevant - average inventory waiting declining actually means phones are getting shipped, which is a good sign.
C so people know the phone, but don't know that It's by Mammoth. What's the problem? people will still buy the phone they know, and Mammoth's increased production will sell. Irrelevant.
D irrelevant.
E tells you that Mammoth's sales have been dropping (despite the fact that everyone else is selling more, and even despite the fact that mammoth is offering the phone for less). If sales are dropping, there's a high chance the there's no demand for the increased production of mamoth's phone, which will remain to rot in their warehouse.
Answer is E.
