V10-29

Official Solution:


Band Member 1: For the past year, we spent money on an advertising campaign to promote ourselves on social media, and we gained 100,000 fans. Clearly, the advertising campaign was worthwhile.

Band Member 2: Although we gained 100,000 fans on social media, the digital sales of our music in terms of number of units sold have remained flat. Thus, the advertising campaign was just an additional expense and wound up costing us money.

Which of the following demonstrates a flaw in the reasoning of Band Member 2?


A. Most of the new fans can listen to the band’s music for free
B. Gaining new fans through social media often results in additional sales of digitalised older music, which would otherwise decline
C. People often express an interest in a product on social media in order to become eligible for free giveaways
D. Attendance at the band’s concerts has declined
E. The main online sales platform for distributing the band’s music decreased prices over the past year


The reasoning of the of the Band member is 2 is as follows:

Premise: Digital sales did not increase.

Conclusion: The advertising campaign was only an additional expense (without any monetary gain for the band).

The correct option must point out an effect of the advertising that gave rise to some positive monetary gains for the band.

(A) This choice actually supports the contention of Band Member 2. If the music was available for free, then even though the advertising might increase the interest in the band’s music, the sale would not increase since the music is available free of cost and can be listened to without buying it. Thus there was no monetary gain for the band.

(B) CORRECT. This choice suggests that if the band had not spent money on the social media campaign, its digital sales would have decreased, rather than remaining flat. Thus, the advertising campaign was not just an additional expense since it did lead to additional sales.

(C) This option suggests that Band Member 2 is correct that the new fans will not make purchases.

(D) This option does not indicate any positive effect of the advertising in terms of monetary gain for the band and hence is the wrong choice.

(E) If prices for the band’s music decreased and sales were flat, implying the revenue of the band reduced. Thus the media campaign did not provide any monetary gain for the band and hence is the wrong choice. To elaborate further, the price was dropped; yet the number of units sold did not rise, implying that advertising did not actually help because even without dropping the price the number of units sold should have risen, if the advertisement were effective. Therefore this option actually strengthens the second member's argument.


Answer: B
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The question or/and solution has been revised and edited. Thank you sayantanc2k !!!
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I wrongly choose E because missed the sales remains flat, here the sales is in terms of number of unit instead of money.
Reduce price, the unit of sold keep flat means a decrease on revenue.

I do not understand the explanation. If the sales of digitalized older music grow then the number of units sold cannot be the same.

If the total number of albums sold remained the same but the sales of old albums increased, it is possible that the sales of new albums decreased, resulting in no net change in the total number of albums sold.
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I think this is a high-quality question and I agree with explanation.
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