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For a ten month period, the total monthly sales of new cars [#permalink]
22 Dec 2005, 06:41
0% (00:00) correct
100% (01:01) wrong based on 2 sessions
For a ten month period, the total monthly sales of new cars within the country of Calistan remained constant. During this period the monthly sales of new cars manufactured by Marvel Automobile Company doubled, and its share of the new car market within Calistan increased correspondingly. At the end of this period, emission standards were imposed on new cars sold within Calistan. During the three months following this imposition, Marvel Automobile Company's share of the Calistan market declined substantialy even though its monthly sales within Calistan remained constant at the level reached in the last month of the ten-month period.
If the statements above are true, which one of the following cannot be true?
A) The total monthly sales within Calistan of new cars by companies other than Marvel Automobile Company decreased over the three months following the imposition of the emission standards.
B) Over the three months before the imposition of emission standards, the combined market share of companies other than Marvel Automobile Comapny selling new cars in Calistan decreased
C) If the emission standards had not been imposed, Marvel Automobile Company would have lost an even larger share of the number of new cars sold in Calistan than, in fact, it did.
D) A decrease in the total montly sales of new cars within Calistan will occur if the emissions standards remain in effect
E) Since the imposition of the emission standards, Marvel Automobile Company's average profit on each new car sold within Calistan has increased.
Since Marvels monthly sales remain the same after the ten month period, but their market share decline, other manufacturers have to sale more cars than before. Therefore A can't be true. It's the right answer, I guess.
C could be true, since the competitors had adapt themselves to the new prices, strategy etc., which allowed Marvels to increase their sales, but not at the new emission law.
I think C is wrong, because it is quite possible for multiple reasons that Marvels had lost an even larger share.
But A must be false, since Marvels market share cannot decline if their sales remain steady, while the others sale less. Does this help?