medium · Gre Verbal

When Brightleaf Coffee raised the price of its large latte by 15 percent, industry analysts predicted a sharp fall in the number of large lattes sold. Instead, in the three months after the increase, the number of large lattes sold each week rose noticeably.

Which of the following, if true, best resolves the apparent discrepancy described above?

  1. Throughout the entire period in question, the posted price of Brightleaf's smaller latte size was left completely unchanged.
  2. The size of the increase pushed the price of Brightleaf's large latte well above the price charged for a comparable drink at most rival chains.
  3. At the same time as the increase, Brightleaf discontinued its medium latte, and most former medium buyers began ordering the large.
  4. Over the same three-month stretch, Brightleaf's total revenue taken in across every drink on its menu actually fell by a slight but real amount.
  5. In several customer surveys run at the time, a great many respondents said that genuinely good coffee was well worth paying a somewhat higher price for.

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