The Circle Multiplex has seen tremendous growth in the number of custo

The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.

Which of the following statements is an assumption made by the management of The Circle Multiplex?

A. The Circle Multiplex has lower ticket prices than other Multiplexes in the region.

B. Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.

C. No existing customer of The Circle Multiplex is going to shift for minor economic considerations.

D. Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.

E. Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.