medium · GMAT Verbal

GreenField Grocers will raise the price of its organic produce by 10%, confident that its total revenue from organic produce will rise. The company points out that demand for organic produce has historically been insensitive to price changes.

The argument depends on which of the following assumptions?

  1. GreenField's own customers will respond to the price increase in roughly the way organic-produce buyers have responded historically.
  2. GreenField's cost of stocking organic produce will not rise by more than 10%.
  3. Competing grocers will raise their organic-produce prices by a similar amount.
  4. Organic produce is more healthful than conventionally grown produce.
  5. GreenField sells a larger volume of organic produce than any of its competitors.

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