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03 Jun 2026, 11:38
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
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Question Stats:
50% (01:26) correct
50%
(02:26)
wrong
based on 6
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A manufacturer of specialized computer workstations formerly made nearly all of its sales to corporate customers at prices well below the list price. Because surveys showed that other potential customers were being deterred by its relatively high list prices, the manufacturer, in an effort to increase its sales, reduced those prices to a level closer to what its customers had been paying. This move attracted some new customers, but overall the manufacturer’s sales actually fell.
Which of the following, if true, most helps explain why the manufacturer’s sales fell instead of rising?
A. The manufacturer’s new list prices were no lower than those of most of its competitors.
B. Demand for specialized computer workstations has been increasing steadily for several years.
C. Corporations rarely employ people who lack extensive knowledge about the prices of equipment as buyers of such equipment.
D. Customers differ significantly in the proportions of their resources they are willing to devote to specialized equipment such as computer workstations.
E. Buyers who purchase equipment such as computer workstations for their employers typically receive bonuses for negotiating large discounts from the list price.
Which of the following, if true, most helps explain why the manufacturer’s sales fell instead of rising?
A. The manufacturer’s new list prices were no lower than those of most of its competitors.
B. Demand for specialized computer workstations has been increasing steadily for several years.
C. Corporations rarely employ people who lack extensive knowledge about the prices of equipment as buyers of such equipment.
D. Customers differ significantly in the proportions of their resources they are willing to devote to specialized equipment such as computer workstations.
E. Buyers who purchase equipment such as computer workstations for their employers typically receive bonuses for negotiating large discounts from the list price.
03 Jun 2026, 13:04
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A manufacturer of specialized computer workstations formerly made nearly all of its sales to corporate customers at prices well below the list price. Because surveys showed that other potential customers were being deterred by its relatively high list prices, the manufacturer, in an effort to increase its sales, reduced those prices to a level closer to what its customers had been paying. This move attracted some new customers, but overall the manufacturer’s sales actually fell.
Which of the following, if true, most helps explain why the manufacturer’s sales fell instead of rising?
To get a Paradox question correct, we have to identify precisely what the correct answer must do.
In this case, the correct answer must explain why sales fell even though the price reduction served to attract some new customers.
A. The manufacturer’s new list prices were no lower than those of most of its competitors.
This doesn't explain why sales fell. After all, even if this choice is true, the manufacturer did attract new customers by reducing its prices.
Eliminate.
B. Demand for specialized computer workstations has been increasing steadily for several years.
This choice would explain the opposite of what the correct answer must explain.
After all, an increase in demand would logically result in increased sales, not decreased sales.
Eliminate.
C. Corporations rarely employ people who lack extensive knowledge about the prices of equipment as buyers of such equipment.
This choice doesn't explain the change.
After all, though the list prices have changed, the actual prices at which the manufacturer transacts haven't. People knowledgeable about prices would be aware of that.
So, they wouldn't change their buying habits because they would understand that nothing had really changed.
Eliminate.
D. Customers differ significantly in the proportions of their resources they are willing to devote to specialized equipment such as computer workstations.
This choice doesn't explain anything about sales levels.
After all, all it means is that customers don't all spend the same amounts on equipment such as workstations. That doesn't indicate why they spent less.
Eliminate.
E. Buyers who purchase equipment such as computer workstations for their employers typically receive bonuses for negotiating large discounts from the list price.
This choice is interesting.
If this choice is true, then buyers would have been more likely to purchase from the manufacturer when its list prices were higher and it was in actuality selling at prices well below list prices. After all, if this choice is true, in that situation, the buyers would have been purchasing at discounts and gotten bonuses for doing so.
Also, now, such buyers would be less likely to buy from the manufacturer since, with actual transaction prices closer to list prices, the buyers wouldn't be getting as large discounts and therefore would not be getting as large bonuses by buying from the manufacturer.
So, this choice could explain why buyers went elsewhere.
Keep.
Correct answer: E
Which of the following, if true, most helps explain why the manufacturer’s sales fell instead of rising?
To get a Paradox question correct, we have to identify precisely what the correct answer must do.
In this case, the correct answer must explain why sales fell even though the price reduction served to attract some new customers.
A. The manufacturer’s new list prices were no lower than those of most of its competitors.
This doesn't explain why sales fell. After all, even if this choice is true, the manufacturer did attract new customers by reducing its prices.
Eliminate.
B. Demand for specialized computer workstations has been increasing steadily for several years.
This choice would explain the opposite of what the correct answer must explain.
After all, an increase in demand would logically result in increased sales, not decreased sales.
Eliminate.
C. Corporations rarely employ people who lack extensive knowledge about the prices of equipment as buyers of such equipment.
This choice doesn't explain the change.
After all, though the list prices have changed, the actual prices at which the manufacturer transacts haven't. People knowledgeable about prices would be aware of that.
So, they wouldn't change their buying habits because they would understand that nothing had really changed.
Eliminate.
D. Customers differ significantly in the proportions of their resources they are willing to devote to specialized equipment such as computer workstations.
This choice doesn't explain anything about sales levels.
After all, all it means is that customers don't all spend the same amounts on equipment such as workstations. That doesn't indicate why they spent less.
Eliminate.
E. Buyers who purchase equipment such as computer workstations for their employers typically receive bonuses for negotiating large discounts from the list price.
This choice is interesting.
If this choice is true, then buyers would have been more likely to purchase from the manufacturer when its list prices were higher and it was in actuality selling at prices well below list prices. After all, if this choice is true, in that situation, the buyers would have been purchasing at discounts and gotten bonuses for doing so.
Also, now, such buyers would be less likely to buy from the manufacturer since, with actual transaction prices closer to list prices, the buyers wouldn't be getting as large discounts and therefore would not be getting as large bonuses by buying from the manufacturer.
So, this choice could explain why buyers went elsewhere.
Keep.
Correct answer: E
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