medium · GMAT Verbal
To increase revenue, a struggling cinema chain plans to reduce the price of its popcorn and sodas by 50%. The management believes that the lower prices will attract more customers who would have otherwise avoided the high cost of concessions, thereby increasing total profit.
Which of the following, if true, most weakens the management's reasoning?
- The cost of raw popcorn kernels and soda syrup has remained stable over the past three years.
- Cinemas in neighboring towns that lowered concession prices saw their total concession revenue rise the following quarter.
- The majority of the cinema's current customers already purchase concessions and are unlikely to buy additional items even at lower prices.
- The cinema chain recently renovated several of its theaters to include reclining seats.
- Many people choose which cinema to attend based on the quality of the projection and sound systems rather than the price of snacks.
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