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Consumers planning to buy recreational equipment tend to buy [#permalink]
14 Dec 2006, 21:01
0% (00:00) correct
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Consumers planning to buy recreational equipment tend to buy higher quality,
more expensive equipment when the economy is strong than when it is
weak. Hill and Dale is a business that sells high-quality, expensive camping
and hiking equipment in Boravia. Although all the signs are that Boraviaâ€™s
economy is now entering a period of sustained strength, the managers
of the business do not expect a substantial increase in sales.
Which of the following, if true, would provide the strongest
justification for the managersâ€™ judgment?
A. A significant proportion of Hill and Daleâ€™s sales are made to
customers who enter the store in order to buy one particular
item but, once there, find other items to buy as well.
B. In Boravia when the economy is strong, those who might
otherwise go camping tend to take vacations overseas.
C. The economic upturn is likely to allow Boraviaâ€™s national
parks, where most of the camping and hiking is
done, to receive extra funding to improve their visitor facilities.
D. Advances in materials technology have led to the
development of hiking and camping equipment that
is more comfortable and lightweight than before.
E. Many people in Boravia not only are committed to
preserving the countryâ€™s wilderness areas but also
are interested in spending some time in them.
B makes the most sense, very cut and dry, when economy is good, people who are planning to buy, buy higher end recreational equipment , but in Boravia when the economy goes up, less people will be planning to buy equipment because evreyone will be going on vacations elsewhere
B provides the best reason why sales forcast is not going up in a strong economy......those who tend to buy camping equip in strong economy tend to go on vacations instead. The current customer base is not expanded therefore the sales are not anticipated to increase