A, C and D can be quickly eliminated.
The answer boils down to option B or E.
Option B) A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.
This means that any new store that is opened anywhere else, will lead some of these shoppers to the other stores. This would lead to a reduction in business.
But, this is not specific to a new SaveAll store, nor is it necessary that the shoppers would migrate. Nor is it necessary that the migration would be so high that the central shopping stores would go bankrupt. The shoppers may have higher loyalty, or may be in a sense of routine or be more comfortable with the current shopping at central stores trend.
So, the opening of any new store may or may not lead these stores to bankruptcy.
Option E) Most of the newly opened SaveAll stores never make losses during their first five years of operation.
This shows that the large discount store continuously makes profit, that means it continuously attracts more customers, continuously attracts more business. Slowly and steadily, over a span of 05 years, sucks the life out of the central shopping area.
This option adds the missing part in option B. This shows that the shoppers actually migrate. This shows that the shopping is reduced in the central area, whereas it has increased in SaveAll.
Option E it is.
nailin16 wrote:
Community activist: I Venicelpark wants to keep its central shopping district healthy, it should prevent the opening of a huge SaveAll discount department store on the outskirts of Venicelpark. Records from other small towns show that whenever SaveAll has opened a store outside the central shopping district of a small town, within five years the town has
experienced the bankruptcies of more than a quarter of the stores in the shopping district.
The answer to which of the following, if true, would most strengthen the community activist’s argument.
A. The community activists in other towns successfully have affirmed the opening of a SaveAll store on the outskirts of their towns.
B. A large percentage of the residents of Venicelpark currently do almost all of their shopping at stores in Venicelpark.
C. In towns with healthy central shopping districts, some of the stores in those districts suffer bankruptcy during a typical five-year period.
D. Most of the employees at the SaveAll store on the outskirts of Venicelpark will be drawn from Venicelpark.
E. Most of the newly opened SaveAll stores never make losses during their first five years of operation.