Footwear designer John de los Santos last year released several limited editions of his best-known model of sneaker in exotic colors and prints. Although the new releases were priced substantially higher than their counterparts in more traditional colors, they sold out within a week of their release, and have since been selling on the resale market for up to four times the original price. The cost of producing the sneakers in exotic prints is no greater than that of producing them in more traditional colors, so de los Santos could earn a higher profit per unit by producing a greater percentage of his sneakers in such prints.
Which of the following is an assumption made in drawing the conclusion above?
a)The designers who compete most directly with de los Santos will not produce similar lines of limited-edition sneakers in the near future.
There is no other suppy of these sneakers but Santos. Santos will have a monopoly on those. Sound good, we save A in the list.
b)Consumers' willingness to pay higher prices for the exotic sneakers was not influenced by the relative scarcity of
those sneakers.
Limit supply => high price. B is good, let save it in the list.
c)De los Santos's customer base is not shifting in the direction of younger consumers who prefer bolder styles.
Not relevant
d)De los Santos's sneakers are not priced substantially higher than those of the designers who compete most directly with him.
Not relevant
e)The workmanship of de los Santos's sneakers is of such high quality that it is impossible for lower-budget shoemakers to produce counterfeit versions of them.
Counterfeit, uhm, it is interesting. But the customers who paid the high price to get the real one are unlikely to buy fake products. Hence the answer is wrong.
Between A and B. B is stronger.
加入收藏
在线答疑
