medium · GMAT Verbal

A national electronics retailer raised the price of its most popular wireless headphones by 15% last quarter. Despite the price increase, total revenue from that headphone model rose by 20% over the same quarter, even though the retailer made no changes to advertising or store placement for the product.

Which of the following, if true, most helps explain the increase in revenue despite the higher price?

  1. The retailer's overall store traffic declined slightly during the quarter.
  2. Customer reviews of the headphones remained consistently positive throughout the quarter.
  3. The retailer's warehouse had ample inventory of the headphones throughout the quarter.
  4. A rival's closely competing headphone model was discontinued during the same quarter.
  5. The headphones' manufacturing cost increased slightly during the quarter.

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