QUESTION TEXT: In an effort to boost sales during…
QUESTION TYPE: Paradox – Exception
PARADOX: Foamy soda lowered prices during the busy summer months, but sales fell.
ANALYSIS: There are many, many reasons to explain why Foamy lost sales. There’s not much work you can do on this question before looking at the answers.
___________
- This shows that Foamy just had bad luck. The entire industry had bad sales.
- This shows that Foamy’s prices were high, compared to the competition.
- CORRECT. This would lower Foamy’s profits, but it shouldn’t affect how many people buy soda. Customers don’t care about production costs.
- You can’t buy Foamy Soda if no one is selling it.
- It wasn’t Foamy’s prices, but rather the weather that caused sales to fall.
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