OG 13 CR 15 and 99 - ChaseDream - Powered by Discuz!

15. A certain automaker aims to increase its market shareby deeply discounting its vehicles’ prices for the next several months. Thediscounts will cut into profits, but because they will be heavily advertisedthe manufacturer hopes that they will attract buyers away from rivalmanufacturers’ cars. In the longer term, the automaker envisions that customersinitially attracted by the discounts may become loyal customers.

In assessing the plan’s chances ofachieving its aim, it would be most useful to know which of the following?

(A) Whether the automaker’s competitors are likely torespond by offering deep discounts on their own products

(B) Whether the advertisements will be created by themanufacturer’s current advertising agency

(D) Whether the automaker will be able to cut costssufficiently to maintain profit margins even when the discounts are in effect

(E) Whether an alternative strategy might enable the automakerto enhance its profitability while holding a constant or diminishing share ofthe market

92. In the country of Veltria, the past two years’ broad economicrecession has included a business downturn in the clothing trade, where salesare down by about 7 percent as compared to two years ago. Clothing wholesalershave found, however, that the proportion of credit extended to retailers thatwas paid off on time fell sharply in the first year of the recession butreturned to its prerecession level in the second year.

Which of the following, if true, most helps to explainthe change between the first and the second year of the recession in theproportion of credit not paid off on time?

(A) The total amount of credit extended to retailers byclothing wholesalers increased between the first year of the recession and thesecond year.

(B) Between the first and second years of the recession,clothing retailers in Veltria saw many of their costs, rent and utilities inparticular, increase.

(C) Of the considerable number of clothing retailers inVeltria who were having financial difficulties before the start of therecession, virtually all were forced to go out of business during its firstyear.

(D) Clothing retailers in Veltria attempted to stimulatesales in the second year of the recession by discounting merchandise.

(E) Relatively recession-proof segments of the clothingtrade, such as work clothes, did not suffer any decrease in sales during thefirst year of the recession.