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 own cost of stocking and shelving its organic produce will not climb by more than the planned 10% during the same period.
  3. Competing neighborhood grocers will also choose to raise their own organic-produce prices by a roughly similar amount.
  4. Organic produce is, on the whole, meaningfully more healthful for the shopper than ordinary conventionally grown produce is.
  5. GreenField regularly sells a substantially larger total volume of organic produce than any of its direct local competitors does each year.

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