medium · GMAT Verbal
A company plans to increase its annual revenue by raising the price of its main product by 10%.
The company's plan depends on which of the following assumptions?
- The resulting drop in units sold will be small enough that price times quantity still rises.
- Rival firms selling competing products will respond by raising their own prices to a similar degree.
- The product's overall quality will be noticeably improved at the same time the price hike takes effect.
- The cost of manufacturing each unit of the product will stay constant after the price increase.
- Customers regard the product as having absolutely no acceptable substitute available at any price at all.
Sign up free to see the explanation and track your rank →
More GMAT Verbal practice
- What logical role do the first two statements play?
- Which of the following is the conclusion?
- A gardener says: 'All roses in this garden require daily wat… — What is the role of the st
- What is the conclusion?
- What is the conclusion?
- What logical role does the first sentence play in the researcher's argument?
- What is the conclusion?
- Which of the following, if true, most undermines the agency's claim?