Carcass wrote:
A. Newtronix’s market share has declined since the price increase.
B. A recent patent dispute led to the ban of sales of ePods in several countries.
C. Materials necessary to the production of a necessary component of the ePod recently went up in price.
D. The average customer purchased fewer ePods as a result of the price increase, while the number of customers purchasing ePods remained the same.
E. The government imposed higher taxes on Newtronix just prior to the price increase.
The choice that does not explain why the profits declined is the correct choice.
A is the only choice that does not help in the understanding of the decline in the profits and thus is correct.
Just a though can “C” be the answer as it also does not tell how the profit declined,
And answer “A” tell as the market share has declined which directly related to decrease in profit?