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21 Jan 2021, 20:44
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
45% (02:10) correct
55%
(02:18)
wrong
based on 372
sessions
History
Date
Time
Result
Not Attempted Yet
Delta Solutions has developed a software that is significantly costlier to make compared to all previous software made by the company. Market experts predict that Delta will not be able to sell the new software without decreasing the usual profit margins the company prefers to keep on all its products: most of the target clients would not be able to afford such expensive software. Furthermore, Delta is infamous for its tendency to outrageously overprice all its products, a tendency that has restricted its client base in the past.
The statements above, if true, most strongly support which of the following?
A. Delta will find it difficult to create a substantial market for its latest product even if it lowers its profit margins.
B. Delta earns high profits because of its high profit margins per unit even though the sales volume is moderate.
C. Delta’s pricing policies have so far been healthy for the company’s growth and a slight dip in the price of the new software will not hamper its future prospects.
D. Delta’s high prices are often a reason behind people buying its products since many believe in the idea “costlier is better”.
E. Delta’s reputation for overpricing its products can be changed if it lowers its profit margins on the new software.
The statements above, if true, most strongly support which of the following?
A. Delta will find it difficult to create a substantial market for its latest product even if it lowers its profit margins.
B. Delta earns high profits because of its high profit margins per unit even though the sales volume is moderate.
C. Delta’s pricing policies have so far been healthy for the company’s growth and a slight dip in the price of the new software will not hamper its future prospects.
D. Delta’s high prices are often a reason behind people buying its products since many believe in the idea “costlier is better”.
E. Delta’s reputation for overpricing its products can be changed if it lowers its profit margins on the new software.
13 Feb 2021, 19:40
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I think this is an Inference question.
A. Delta will find it difficult to create a substantial market for its latest product even if it lowers its profit margins. - This is the only thing that can be inferred, the prompt is ripe with info explaining why D may have a hard time selling this new product.
B. Delta earns high profits because of its high profit margins per unit even though the sales volume is moderate.- We know nothing about current sales volume and how margins are. B is out.
C. Delta’s pricing policies have so far been healthy for the company’s growth and a slight dip in the price of the new software will not hamper its future prospects.- We know nothing about how current pricing policies have fared for the company. C is out.
D. Delta’s high prices are often a reason behind people buying its products since many believe in the idea “costlier is better”.- Out of focus, customers may buy from D because its products are superior or for some other reason. We don't know. D is out.
E. Delta’s reputation for overpricing its products can be changed if it lowers its profit margins on the new software. - We don't know if its reputation can be changed if this one product is priced more cheaply. E is out.
A is our correct answer.
Posted from my mobile device
A. Delta will find it difficult to create a substantial market for its latest product even if it lowers its profit margins. - This is the only thing that can be inferred, the prompt is ripe with info explaining why D may have a hard time selling this new product.
B. Delta earns high profits because of its high profit margins per unit even though the sales volume is moderate.- We know nothing about current sales volume and how margins are. B is out.
C. Delta’s pricing policies have so far been healthy for the company’s growth and a slight dip in the price of the new software will not hamper its future prospects.- We know nothing about how current pricing policies have fared for the company. C is out.
D. Delta’s high prices are often a reason behind people buying its products since many believe in the idea “costlier is better”.- Out of focus, customers may buy from D because its products are superior or for some other reason. We don't know. D is out.
E. Delta’s reputation for overpricing its products can be changed if it lowers its profit margins on the new software. - We don't know if its reputation can be changed if this one product is priced more cheaply. E is out.
A is our correct answer.
Posted from my mobile device
