The price of the SuperPixel high definition television, by Lux Electro

Question

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.

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Abhiswarup · Answer

The passage says that superpixel HD TV of Lux electronics are very expensive and most of the customers can't afford it. However, superpixel reduced its price by 40% which led to 3 fold increase in its sale. The question wants which statement suggests that sale will not grow at the same rate till August. Lets analyze the statements:
 
(A) Most of the customers who had been saving up for the SuperPixel bought the television in July.
Statement can be correct as if the customers who have saved money for purchasing superpixel has completed their purchase in July. It will be difficult to purchase TV in August owing to high cost.
(B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
Decline in more expensive Megapixel can't conclude for declining sales of super pixel. Eliminate.
(C) Electronics sales tend to peak in August and December.
This will strengthen the argument that increasing trend of sales will continue till August. Eliminate.
(D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
Superpixel is unreliable and profit of Lux electronics comes from repairs can't conclude sales will decline in August. It mere gives a possibility that it is unreliable. Eliminate 
(E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.
Price reduction will lead to increased chances of sale despite high price. Thus increase trend may continue in August. Eliminate.

Answer should be A.

Dereno · Answer

The price of Superpixel HDTV has been beyond the buying capacity of most customers, who are eagerly willing to purchase this tv. Amongst them, a few have been saving money to get this tv in the upcoming years. Maybe they might wait for year end sale, discount offers etc.

Suddenly, in the month of July, super pixel immediately slashed down the price by 40%. Which is nearly half down the price. It’s natural for those who have been saving and eagerly awaiting to grab this opportunity. It’s seen in the sales outcome being tripled.

Techware forecast is that - Sales will grow till August end.

Why is this forecast misguided ????

If everyone who was waiting for the lower price already bought the TV in July, there won't be a big group of new buyers in August to cause another huge jump in sales.

keeping in Line, the only option that matches up with ours is  Option A

rishabh1105 · Answer

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.
Could be right. If most of them bought we would see a decrease in the upcoming month

(B) Sales of the MegaPixel high definition television, an even more expensive model than the SuperPixel, saw declining sales in the month of July.
So what? Even if MegaPixel high definition television saw declining sales may be it is because it is super expensive, but nothing can be said about SuperPixel

(C) Electronics sales tend to peak in August and December.
If that is the case then the argument might not be misguided. Right?

(D) The SuperPixel tends to be an unreliable television and Lux Electronics makes a considerable profit from repairs.
May be because of unreliability there might be a decrease, but it isn't very certain, it could still have increasing profits due to discounts offered

(E) The SuperPixel is the only model for which Lux Electronics plans a price reduction.
Doesnt help us in identifying if the argument is misguided. It is an added information. It actually strengthens to an extent. If it is the only model with discount which might attract more customers

Bunuel · Answer

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.

The price of the SuperPixel high definition television, by Lux Electro

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