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I think it has to be A... If D would be true, the sales of luxury cars would remain the same. If A would be true, the sales would not only remain the same but decrease since some of the buyers would choose the cheaper one out of the luxury cars.
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So, I narrowed down to option A and D.

Option A:- “People who buy Carter’s entry level luxury car would have bought one of Carter’s current luxury cars” - This intially sounded like a flaw in the plan, as it would possibly cannibalise the sales of the higher priced cars. But we don’t seem to be concerned with the sales value, rather the sales volume(number of), and hence, this isn’t the main flow. So, eliminate.

Option D- “ The features planned for Carter’s luxury car are not likely to attract any buyers – old or new” - If this were true, we’d not see an increase in the number of sales in the luxury segment. Hence, Option D.
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Hi experts KarishmaB GMATNinja DmitryFarber

(A) People who buy Carter's entry level luxury car would have bought one of Carter's current luxury cars.

Could you please explain why option A is wrong?

My reasoning: If people who buy entry level luxury car would have bought current luxury car, then number of cars sold by Carter Automative might remain unchanged so plan to boost sales (number of cars sold) might not work. I think Option A should have said "would have ALSO bought" to be a correct answer.

Please let me know your thoughts or where I am faltering here.
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Option (A) is the answer too.

If people buying current luxury cars will switch to its lower priced entry level luxury car, then the number of luxury cars will stay the same and the revenue from luxury cars will likely decrease. So nothing is increasing for sure.



agrasan
Hi experts KarishmaB GMATNinja DmitryFarber

(A) People who buy Carter's entry level luxury car would have bought one of Carter's current luxury cars.

Could you please explain why option A is wrong?

My reasoning: If people who buy entry level luxury car would have bought current luxury car, then number of cars sold by Carter Automative might remain unchanged so plan to boost sales (number of cars sold) might not work. I think Option A should have said "would have ALSO bought" to be a correct answer.

Please let me know your thoughts or where I am faltering here.
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