Logical Reasoning

PT137 · S4 · Q17 In order to save money

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In order to save money, many consumers redeem coupons that are distributed by retail stores.

Given

In order to save money, many consumers redeem coupons that are distributed by retail stores.

However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products even after lower prices available on coupon-discounted products are factored in.

This is because producing and distributing coupons usually costs a great deal.

To compensate for this expense without reducing profits, retail stores must pass it on to consumers.

17.

Which one of the following can be properly inferred from the information above?

  1. Many consumers who redeem coupons

    Unsupported Relationship

    The number of consumers who do not save much money by redeeming coupons is not discussed in the information.

    17% picked this

  2. Correct

    Retail stores that distribute coupons

    Why this is right

    This follows from the second statement [retail stores charge higher prices], third statement [producing and distributing coupons is expensive], and fourth statement [retail stores compensate for the expense].

    Skill tested: Must be True · how this choice captures the argument's function is the move to repeat next time.

    65% picked this

  3. The profits of retail stores

    Contradiction

    The statements suggest that retails stores that use coupons pass the expense of doing so on to the customer with higher overall prices.

    5% picked this

  4. At least some retail stores

    Unsupported Relationship

    Retail stores that do not use coupons are not discussed in the information.

    3% picked this

  5. The undiscounted price charged for

    Too Strong

    The statements provide that overall the prices at stores that distribute and accept coupons are higher than at stores that do not offer coupons, but to say that the relationship holds for any item carried by both types of stores goes too far.

    10% picked this

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