Inference

Delta Solutions has developed a software that is significantly costlier to make compared to all previous software made by the company. Market experts predict that Delta will not be able to sell the new software without decreasing the usual profit margins the company prefers to keep on all its products: most of the target clients would not be able to afford such expensive software. Furthermore, Delta is infamous for its tendency to outrageously overprice all its products, a tendency that has restricted its client base in the past.

The statements above, if true, most strongly support which of the following?

A. Delta will find it difficult to create a substantial market for its latest product even if it lowers its profit margins

B. Delta earns high profits because of its high profit margins per unit even though the sales volume is moderate

C. Delta’s pricing policies have so far been healthy for the company’s growth and a slight dip in the price of the new software will not hamper its future prospects

D. Delta’s high prices are often a reason behind people buying its products since many believe in the idea “costlier is better”

E. Delta’s reputation for overpricing its products can be changed if it lowers its profit margins on the new software

The OA is A