Certain items—those with that hard-to-define quality called exclusivity—have the odd property, when they become available for sale, of selling rapidly even though they are extremely expensive. In fact, trying to sell such an item fast by asking too low a price is a serious error, since it calls into question the very error in the initial asking price is in the direction of setting the price too high.
What this question is testing
Conclusion
The author tells sellers of exclusive items: if you're going to miss the right price, miss high — not low.
Evidence
Why? Because pricing too low is specifically harmful: it undercuts the very exclusivity that's the item's main appeal.
Evaluate
Notice the argument structure. The author isn't saying pricing-too-high has all kinds of benefits. The author is saying pricing-too-low has a particular self-defeating problem — it kills exclusivity. So pricing-too-high wins by default: it lacks that specific counterproductive feature.
Goal
The right answer will describe this exact move — recommend strategy A because strategy B has a counterproductive feature that A doesn't share.
Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.