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# Spending on clothes in this country increased by 35% from

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Manager
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Spending on clothes in this country increased by 35% from [#permalink]

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12 Nov 2004, 19:02
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Spending on clothes in this country increased by 35% from 1970 to 1990. Over the same period, however, revenue from clothing sales actually made instores, whether retail or wholesale, only increased by 20% and most of that increase took place in national chain departmental stores.

Based on the above statements, which of the following is the most reasonable conclusion about the period from 1970 to 1990

1. There was an increase in spending on clothes that were purchased thru alternate channels, such as thru the mail or over the phone.

2. Spending on clothes decreased in those stores that were not national chain department stores

3. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets.

4. Most of the increase in spending on clothing was the result of an increase in sales of high price items to a relatively small number of people.

5. Most of the clothing sales that did not take place in stores were made thru the mail order divisions of national department stores.
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Senior Manager
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12 Nov 2004, 19:09
C for me.

Quote:
3. The spending increase was not caused by people buying more clothes, but by an increase in clothing prices, both in retail stores and in wholesale outlets

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12 Nov 2004, 19:52
A for me. This explains why the consumer spending increased while instores revenue dropped.
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15 Nov 2004, 00:50
Both A and C are close. I am inclined towards C especially because C says that 'MOST' spending is because of price increase. May be the remaining SOME increase may be due to the mail order/catalog sales (as outlined in A). So, C is kinda a superset to A.
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15 Nov 2004, 08:32
The question never talks about any alternate channels, so 'A' is out of the picture. 'C' can be logically concluded from the fact that spending increased by 35% but revenues increased only by 20%
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15 Nov 2004, 10:58
C for me. The first thing that strikes me when I read this is HOW can there be only a 20% increase?? There must be some hidden reason then. Maybe shopping from abroad etc. C gives the perfect solution that it was due to increase in the price of goods. It is the only answer choice that is supported by all the evidence.
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15 Nov 2004, 11:09
The OA is A People!
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15 Nov 2004, 11:12
ninomoi wrote:
The OA is A People!

OHHH!! has to be A. realised it just now. the question only speaks abt the "instores" revenue. So like A says, if we purchase via phone or anything else, then "instores" revenue will drop. Nice question.

I feel so so so silly now. Bad mistake.
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15 Nov 2004, 11:50
I realise my oversight the question mentions revenues but I inadvertenly assumed it to be profit
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15 Nov 2004, 12:48
As we say in my place Daalu o (means thanks a lot) for the lovely discussion!
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Re: CR- Clothes [#permalink]

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01 May 2010, 23:17
what is the problem with option E please explain
Re: CR- Clothes   [#permalink] 01 May 2010, 23:17
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# Spending on clothes in this country increased by 35% from

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