GMAT Exam Dumps : Graduate Management Admission Test (2022)

A city's chamber of commerce has the following goal for small businesses: revenue should be at least 20% greater than costs. The Venn diagram indicates that x is the number of small businesses that both in Year 1 and in Year 2 met the goal. The diagram also indicates that 53 - x is the number of small businesses that met the goal in Year 1 but not in Year 2, and that 47 - x is the number of small businesses that met the goal in Year 2 but not in Year 1.

Sales promotions can involve selling a product at a relatively low price or selling the product with a free (or seemingly free) unit of the product, as in "buy one, get one free" campaigns. Research shows that immediately following month-long sales promotions, a postpromotion dip may occur, i.e., sales for the following calendar month may be less than sales for the calendar month preceding the sales promotion.

To increase sales, Storex, a department store, held month-long sales campaigns to promote four of its products. A sales promotion was considered successful if unit sales of the product were at least 10% higher in each of the 2 calendar months immediately following the promotion than In the month preceding it.

Experts have offered explanations for postpromotion dip:

• Explanation I: Many consumers stockpile the product at relatively low cost during the sales promotion.

• Explanation II: "Buy one, get one free" promotions cause some consumers to undervalue the product, making them less likely to buy it following the sales promotion.

• Explanation HI: Many consumers who missed a "buy one, get one free" opportunity may, as a result, develop so-called inaction inertia, i.e., become less likely to buy the product at either the regular or even at a discount price than if the sales promotion had not occurred.

Which one of the following is most strongly supported by the sales data, given the other Information provided?

Which of the following, if true, would most undermine the reasoning offered for the claim that gray markets can in certain conditions lead to increased profits among authorized retailers?