Bunuel wrote:
The price of the SuperPixel high definition television, by Lux Electronics, has typically been out of the range of most consumers, a few of whom nonetheless save up for the television. This past July, the SuperPixel reduced its price by 40%, and sales during that month nearly tripled. TechWare, a popular electronics magazine, claims that the SuperPixel television should continue to see sales grow at this rate till the end of August.
Which of the following suggests that TechWare’s forecast is misguided?
(A) Most of the customers who had been saving up for the SuperPixel bought the television in July.
(B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
(C) Electronics sales tend to peak in August and December.
(D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
(E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.
Official Explanation
The SuperPixel television is very expensive, so it is not surprising that with the drastic price reduction many bought it (the television is popular and many save up to buy it). However, the argument assumes that the surge in sales that occurred in July, when the price reduction happened, will continue into August.
(A) provides a reason to doubt the claim: many who had been saving to buy the T.V. bought one in July. Therefore, the price reduction led many consumers (those who represented a pent-up demand) to buy the T.V. In August, there is no longer a pent-up demand, so sales should not be expected to be as high in July. (A) is therefore the answer.
(B) does not relate to SuperPixel and is thus irrelevant.
(C) would suggest that August would be a great sales month, as the paragraph predicts.
(D) relates to SuperPixel sets that have already been bought and in need of repair. Irrelevant.
(E) suggests that there will be no competition from other Lux models. (E) doesn’t provide a reason sales would not decrease in August.