Free Practice Question
CR · Critical Reasoning
555-605
Complete the Passage
Which of the following logically completes the passage below ?
One name-brand cereal manufacturer is about to reduce wholesale prices for its cereals by 20% because consumers have been switching from its cereals to cheaper store brands. The success of this strategy relies on the assumption that supermarkets will pass on all of the savings by lowering the prices they charge consumers for the manufacturers' cereals. Although supermarkets usually pass on such savings, in this case it is likely that supermarkets will not do so because ________.
One name-brand cereal manufacturer is about to reduce wholesale prices for its cereals by 20% because consumers have been switching from its cereals to cheaper store brands. The success of this strategy relies on the assumption that supermarkets will pass on all of the savings by lowering the prices they charge consumers for the manufacturers' cereals. Although supermarkets usually pass on such savings, in this case it is likely that supermarkets will not do so because ________.
Answer Choices
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Several other name-brand cereal manufacturers are about to reduce the wholesale prices of their cereals
B
The average price per box of name-band cereals has significantly increases over the past 10 years.
C
Total annual sales of cereal—including both name-brand and store-brand cereals—have increased over the past 10 years.
D
Supermarkets currently make far more profit on sales of store-brand cereals than on sales of name-brand cereals.
E
The current prices of manufacturers' cereals are comparable to the prices of name-brand cereals produced by other cereal manufacturers.
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Difficulty
555-605
Type
CR