Free Practice Question
CR · Critical Reasoning
sub-505
Assumptions
To boost revenue during a significant downturn in sales, the leading smartphone manufacturers in the United States have implemented unprecedented price hikes on all their devices. The manufacturers are confident that this approach will be effective, despite it contradicting the typical correlation between price and demand.
The manufacturers' strategy to enhance revenue is based on which of the following assumptions?
Answer Choices
Correct answer marked belowA
Smartphone manufacturers will inevitably increase prices whenever they launch a new model.
B
Smaller smartphone manufacturers will continue to capture a significant share of the market from the largest manufacturers.
The additional revenue generated from devices sold will outweigh any reduction in sales resulting from the price hikes.
Correct
D
New software updates that will soon be required for all smartphones will not impose significant costs on manufacturers.
E
Attractive financing options and extended service plans will draw in many budget-conscious consumers.
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Explanation
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Official Explanation
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The manufacturers' strategy relies on the assumption that the increased revenue from the higher prices will compensate for any potential drop in sales. This is reflected in option C, which states that the additional revenue generated…
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Comments
4
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I
ImadMar 16, 2025
Thank for sharing!
C
ColeFeb 10, 2025
thank you for sharing
M
MapMar 8, 2024
thanks for taking time to upload it!
T
TANVIFeb 10, 2024
good question
What this question tests
What it tests
Whether you can identify the unstated assumption a critical-reasoning argument depends on.
Common trap
Picking an option that strengthens the argument or is merely relevant instead of one that is required.
Details
Difficulty
sub-505
Type
CR