Prep2012-Pack1-CR-031 VCR000875 Medium
Which of the following most logically completes the passage below?
One name-brand cereal manufacturer is about to reduce wholesale prices for its cereals by 20 percent because consumers have been switching from its cereals to cheaper store brands. The success of this strategy relies on the assumption that supermarkets will pass on all of the savings by lowering the prices they charge consumers for the manufacturer's cereals. Although supermarkets usually pass on such savings, in this case it is likely that supermarkets not do so because________________.
A. several other name-brand cereal manufacturers are about to reduce the wholesale prices of their cereals
B. the average price per box of name-brand cereals has increased significantly in the last 10 years
C. total annual sales of cereal—including both name-brand and store-brand cereals—have increased over the past 10 years
D. supermarkets make far more profit on sales of store-brand cereals than on sales of name-brand cereals
E. the current prices of the manufacturer's cereals are comparable to the prices of name-brand cereals produced by other cereal manufacturers
Prep2012-Pack1-CR-032 VCR000886 Medium
In Teruvia, the quantity of rice produced per year is currently just large enough to satisfy domestic demand.
Teruvia's total rice acreage will not be expanded in the foreseeable future, nor will rice yields per acre increase appreciably. Teruvia's population, however, will be increasing significantly for years to come. Clearly, therefore, Teruvia will soon have to begin importing rice.
Which of the following is an assumption on which the argument depends?
A. No pronounced trend of decreasing per capita demand for rice is imminent in Teruvia.
B. Not all of the acreage in Teruvia currently planted with rice is well suited to the cultivation of rice.
C. None of the strains of rice grown in Teruvia are exceptionally high-yielding.
D. There are no populated regions in Teruvia in which the population will not increase.
E. There are no major crops other than rice for which domestic production and domestic demand are currently in balance in Teruvia.
