IMO C

The above argument seems like a classical logic reasoning

Lets see why?

B ->The lower the cost of distributing fliers,
C -> the more retail establishments will distribute fliers
D-> retail establishments that distribute fliers generally charge less for items listed in the fliers than retail establishments that do not distribute fliers charge for equivalent items


We have a logical relationship here, A->D- A: if the government subsidized the distribution of fliers by retail establishments , and D: the cost to consumers for retail items will drop.

We can see a gap in the logic and arriving at the final conclusion. We can complete this logic by having A-> B i.e. option C- If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.

This what I felt when I read E, E mentions If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.. It doesn't mention who subsidised whereas our argument concerns only government subsidised distribution of fillers. E takes a broad scope and hence loses to C

the missing conditional chain is: if the government subsidies the distribution of fliers by retail establishments, more retail establishments would distribute fliers.
hence C.

Here is my take by negation, though a little bit convoluted.

Conclusion: If the government subsidized the distribution of fliers by retail establishments, the more retail establishments will distribute fliers and the cost to consumers for retail items will drop.

C. If the government subsidized the distribution of fliers, more retail establishments would distribute fliers.

NS: If the government subsidized the distribution of fliers, NOT more retail establishments would distribute fliers.

This means that the number of retail establishments that distribute fliers after subsidy would be less than or equal to the number of retail establishments that distributed fliers before subsidy. So, price will not decrease; it may remain stable (if the number of retail establishments that distribute fliers after subsidy is equal to the number of retail establishments that distributed fliers before subsidy) or increase (if the number of retail establishments that distribute fliers after subsidy is less than the number of retail establishments that distributed fliers before subsidy). Therefore, conclusion falls apart. Correct answer.

E: If the distribution of fliers by retail establishments were subsidized, then most retail establishments would distribute fliers.

NS: If the distribution of fliers by retail establishments were subsidized, then NOT most retail establishments would distribute fliers.

This means that though MOST retail establishments will not distribute fliers, SOME retail establishments will distribute fliers. The number of this SOME retail establishments may be more than or equal to or less than the number of retail establishments that distributed fliers before subsidy. If the number of retail establishments that distribute fliers after subsidy is more than the number of retail establishments that distributed fliers before subsidy, the price will decrease. So, conclusion will remain same. Not correct answer.

I am not expert, so I may be wrong. If so, please correct me.
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Hasan Mahmud