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Newtronix, a technology company that sells only one product, recently

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Newtronix, a technology company that sells only one product, recently [#permalink] New post   03 Apr 2021, 06:00
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Newtronix, a technology company that sells only one product, recently raised prices on its signature product, the ePod. Analysts had predicted that increased prices would translate into higher profits for Newtronics. However, Newtronix saw its profits decline after the price increase.

Each of the following, if true, is convincing as an explanation for the decline in Newtronix’s profit EXCEPT

(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.

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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   04 Apr 2021, 00:16
is it option e?
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   04 Apr 2021, 00:24
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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.
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   16 May 2021, 11:50
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?
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   16 May 2021, 12:02
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Materials necessary to the production of a necessary component of the ePod recently went up in price.
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   16 May 2021, 12:36
Carcass wrote:
Materials necessary to the production of a necessary component of the ePod recently went up in price.


Thanks I understood when I went back and forth I got your points.

Thanks for your time.
Appreciate your help.
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   17 May 2021, 03:17
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For some reason i have to admit that this is not a quality question, Its wording could have been written in very easy way instead.
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Newtronix, a technology company that sells only one product, recently [#permalink] New post   17 May 2021, 05:32
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GeminiHeat wrote:
For some reason i have to admit that this is not a quality question, Its wording could have been written in very easy way instead.



No

the problem is nOT in the wording per see, specifically the stem

The problem is it is conceived wrongly, in my opinion.

A can be easily true.

I do not see why is wrong if we increase our selling price and AT THE SAME time the market share decrease we could have a decrease in the profits.

A can be true and being a correct answer

The other options are a strongest candidate, more than A. So A is wrong because is the weakest choice but it is not wrong or completely out
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Re: Newtronix, a technology company that sells only one product, recently [#permalink] New post   15 Apr 2024, 03:10
Hello from the GRE Prep Club VerbalBot!

Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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