Jean: Our navigational equipment sells for $1,100 and dominates the high end of the market, but more units are sol...

Shiyi on February 27, 2019

Why is D correct?

Why is D correct?

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Ravi on March 1, 2019


Happy to help. You're asking why (D) is correct.

Jean and Tracy have a disagreement. Jean thinks that their company
would be able to increase sales by adding a low-cost model to their
line. Tracy doesn't agree; she believes that if their company were to
add a low-cost model to their line, they would stop doing so well with
the high-end portion of the market because they would be putting their
competitors on an equal footing with them.

Basically, Jean and Tracy disagree about whether or not adding a
low-cost model would allow their company to increase sales while
continuing to dominate the high-end market.

The questions asks, "Jean's and Tracy's statements most strongly
suggest that they disagree over which one of the following

We've already anticipated their disagreement, so let's look for the
answer choice that matches our anticipation.

(D) says, "The company would no longer dominate the high-cost market
if it began selling a low-cost model."

Jean does not agree with this, as it's the opposite of her conclusion.
She believes that their company can increase sales by adding a product
in the low-cost market while still being able to dominate the
high-cost market. Tracy, on the other hand, believes that if they were
to start selling a product in the low-cost market, it would hurt their
overall sales and would put their competitors in the high-cost market
on equal footing with them. From this, it's clear that Jean and Tracy
disagree about (D), so this is the correct answer.

Does this help? Let us know if you have any more questions!