Hi mikemcgarry, GMATNinjaTwo, GMATNinja, MagooshExpert Carolyn, sayantanc2k,

I think i must miss something on B , but i have no idea what's my problem, please help to clarify
B. For many consumer products the period of advertising discounted prices to consumers is about a week, not sufficiently long for consumers to become used to the sale price.
If the duration of promotion is so short that customers have not yet realised the sale price, then they possible to buy commidities at a regualr price ,which is higher than sale price, then it is apparent to increase the revenues of manufacture,

Does B mean supportable ?

Thanks in advance

Have a nice day

>_~

Ohhh, no, I misunderstood it again.
in fact, B says the duration of promotion is so short that people haven't accustomed to the sales price, people soon buy commidities on regualr price,

so maybe people won't buy commidities because they want to wait another promotion, maybe they will buy commidities because they can't wait another promotion.
so it does not bearing on the argument, right?

Please point out

Thanks in advance

Have a nice dya
>_~

zoezhuyan, your new interpretation of B sounds good! Yes, this would directly affect retailers. And if retailers are selling less product, then they would buy less product from the manufacturers. So, it would impact manufacturers' profits as well.

As for (D), the profit PER item might be lower, but if the manufacturers are selling much more product, then their overall profits will still be higher. Make sense?
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Manufacturers sometimes discount the price of a product to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of product sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.

The argument is that manufacturers can make more profit by not discounting the price of their products for sale to retailers. The evidence used to argue this point is pretty weak as it doesn't really tie in rogue pieces of info presented in the conclusion. We are told that during such promotions, retailers often "advertise" the products to consumers.

We aren't told whether the discounts are passed onto consumers by retailers and the argument assumes that retailers will continue to buy from manufacturer's whether the manufacturer's products are discounted or not.

A is incorrect as it just tells us how the discount is calculated. This isn't relevant to the argument.
B neither helps nor weakens he argument. It just tells us that if retailers discount their products as well then it would be effective as consumers don't get used to this sale price.
C is incorrect as it does nothing to the argument.
D is correct because it tells us that the retailers stockpile product at this discounted price instead of selling it straight too consumers. This infers the retailers may not necessarily be passing on the discounts to the consumers, so the manufacturer's are losing out on profit that they could have otherwise made.
E is incorrect because it doesn't explain why offering a discount in the first place would lead to lower profits than would selling at the regular price in relation to the scenario presented. E presents an alternate scenario that MAY or MAY NOT reduce the profitability of the manufacturer.
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