Here we have an apparent discrepancy: Mega Citrus and Sol Citrus are directly competing at farmers' markets where MOST customers consider low prices to be a priority when selecting fruit. If Mega Citrus is selling non-organic oranges at a price per pound that is 30% lower than Sol Citrus’s current price, you would think that Sol Citrus would have to lower its prices in order to stay competitive.
So which of the following, if true, best explains Sol Citrus’s decision not to lower prices?
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(A) Some consumers consider higher prices to a be a sign of higher quality.
Even if SOME consumers consider higher prices to be a sign of higher quality, that doesn't change the fact that MOST customers at these particular farmers' markets consider low prices to be a priority. Thus, we would still expect that Sol Citrus would have to lower its prices in order to stay competitive. (A) does not resolve the discrepancy and can be eliminated.
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(B) In each of the five years before Mega Citrus began shipping fruit across state lines, sales of Sol Citrus oranges at local farmers' markets exceeded combined sales of oranges from all other orchards selling fruit at the markets.
It doesn't matter how successful Sol Citrus was BEFORE Mega Citrus arrived at the markets. If Mega Citrus is now offering better prices, it might steal all or most of Sol Citrus's business. Choice (B) can be eliminated.
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(C) If Sol Citrus were to lower its prices by just 20%, most of its regular farmers' market customers would continue buying Sol Citrus oranges instead of Mega Citrus oranges.
This statement suggests that Sol Citrus SHOULD lower its prices and does not explain why it would not. Eliminate (C).
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(D) When purchasing citrus fruit, most customers of the farmers' markets consider the fruit’s classification as "organic" to be more important than the cost of the fruit.
The passage tells us that most of the customers consider cost to be a priority, but it does not tell us whether cost is the HIGHEST priority. Choice (D) tells us that most customers consider the fruit's classification as "organic" to be more important than the cost. Since Sol Citrus produces only organic citrus fruit, that might explain why customers are willing to pay more for fruit from Sol Citrus. Choice (D) helps to resolve the apparent discrepancy.
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(E) Unlike Sol Citrus, Mega Citrus grows genetically modified fruits sprayed with pesticides that are illegal in the state in which Sol Citrus is located.
We cannot assume that the farmers' market customers know or care that Mega Citrus grows genetically modified fruits sprayed with those pesticides. Choice (E) is tempting but, on its own, does not explain the discrepancy.
Choice (D) is the best answer.