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Consumers planning to buy recreational equipment tend to buy [#permalink]
29 Sep 2007, 22:48
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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 Boravia’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 managers’ judgment?
A. A significant proportion of Hill and Dale’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 Boravia’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 country’s wilderness areas but also are interested in spending some time in them.
I picked B......Assumption: People of Boravia tend to spend more on quality hiking and camping equipments whenever the economy is strong i.e. increased spending power of consumers.
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