[Solved] Statement: "The company reduced product prices to increase sales volume."Assumptions:1️⃣ Lower prices attract more customers.2️⃣ The company’s sales had been low earlier.... | Reasoning Ability

Reasoning Ability - Statement & Assumption

Statement: "The company reduced product prices to increase sales volume."
Assumptions:
1️⃣ Lower prices attract more customers.
2️⃣ The company’s sales had been low earlier.
Which assumption(s) is/are implicit?

AOnly 1

BOnly 2

CBoth 1 and 2

DNeither 1 nor 2

Step-by-Step Solution

Step 1: Identify objective
The stated aim is to increase sales volume by reducing prices.
Step 2: Examine assumptions
Assumption 1 — that lower prices attract customers — is necessary for the price-cut to be proposed. Assumption 2 — that sales were low earlier — is not strictly required (a firm may cut prices to grow market share even if current sales are satisfactory).
Final Answer:
Only 1 is implicit. → Option A
Quick Check:
If demand were price-insensitive, the price cut would not be justified ✅

Quick Trick: A price-change policy always assumes price affects demand; it doesn't always assume prior poor performance.

Common Mistakes:

Assuming a motive (poor sales) is automatically implied by every price change.

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More Reasoning Ability Quizzes

Which assumption(s) is/are implicit?

Step 1: Identify objective

Step 2: Examine assumptions

Final Answer:

Quick Check:

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