On reading you can assess that sandwich restaurant doesn't change anything else but prices and thinks he can compete with the health food restaurant
this means customers are price sensitive and thereby the reasons for their shift is not the taste but the pricing.
Hence A.
I got confused with C, however that comparison is irrelevant as it compares sandwich restaurants with other similar shops and not health food restaurant which is under question.
E- for a temporary promotion, you know the discount is temporary then why reduce the price as you can't just keep fluctuating the price rather when i know health food restaurant will eventually increase the price, its a short term issue i would probably address it differently.
rw6183
Sales at a local sandwich shop have been declining steadily since a health food restaurant opened its doors for business on the same block three months ago. The owner of the sandwich shop concludes that the best way to raise sales back to prior levels is to offer special sandwich prices that compete with the low prices at the health food restaurant.
Which of the following assumptions helps to justify the owner’s conclusion?
A) Local consumers prefer the food at the sandwich shop to the food at the health food restaurant.
B) Sales at the sandwich shop reached an all-time high six months ago.
C) The sandwich shop’s prices are currently higher than those of a similar shop located in a neighboring town.
D) The sandwich shop does not currently offer any healthful food items.
E) The health food restaurant is running its special prices as a temporary promotion and will be raising its prices at the end of the year.