Last visit was: 25 Apr 2026, 18:33 It is currently 25 Apr 2026, 18:33
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 25 Apr 2026
Posts: 109,830
Own Kudos:
Given Kudos: 105,886
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,830
Kudos: 811,286
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
aksb
Joined: 09 Jan 2021
Last visit: 16 Jan 2026
Posts: 45
Own Kudos:
27
 [1]
Given Kudos: 9
Products:
Posts: 45
Kudos: 27
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Abhiswarup
Joined: 07 Apr 2024
Last visit: 12 Jan 2026
Posts: 198
Own Kudos:
172
 [1]
Given Kudos: 42
Location: India
Posts: 198
Kudos: 172
 [1]
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 25 Apr 2026
Posts: 109,830
Own Kudos:
Given Kudos: 105,886
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,830
Kudos: 811,286
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
In harsh economic times, there is a shift in business from mainstream retail stores to discount retail stores as consumers aim to reduce their total monthly spending. For local discount stores, when unemployment rises or effective wages decline due to inflation or another cause, sales go up. By contrast, however, during periods of extreme economic hardship, business at discount stores stops improving and may even suffer.

Which of the following, if true, does most to explain the contrast described above?

A. During extreme economic hardship, businesses that are located near discount stores and which also cater to lower spending levels also suffer.

B. The lower overall levels of consumer spending are, the more discount stores will benefit.

C. When discount stores flourish, they may be able to hire additional staff and raise effective wages.

D. During extreme economic hardship, consumers may continue to reduce total spending even after they have shifted their purchases to the most economic outlets available.

E. Except during periods of extreme economic hardship, discount stores tend to thrive more in economies benefitting from a direct economic stimulus, which increases spending cash.


Official Explanation



Reading the question: we notice that this is an "explain" question. There's not an argument here, but rather two facts separating by the phrase "by contrast." we try to sum up the contrast. It's that discount retail: 1) can do well in times of hardship, but 2) can also suffer in times of hardship. An explanation will contradict nothing so far and it will connect to both points, the dual success/failure.

Applying the filter: Choice (A) doesn't address the dual success/failure aspect. Nor does (B). Choice (C) sounds promising; when discount stores are doing well, the costs of wages goes up; could that be enough to push their business down? But we look back at the prompt, and it says in the second part that "business at discount stores stops improving and may even suffer." It seems to be talking about the revenue side, not the cost side, especially given what precedes, and (C) doesn't explain that. Choice (D) works: consumers spend more at discount stores under some hardship, but less under severe hardship. Choice (E) discusses only one side of the contrast.

The correct answer is (D).
Moderators:
GMAT Club Verbal Expert
7391 posts
506 posts
361 posts