Study the following information in which a statement is followed by five assumptions. Read carefully and answer the question below:

"If we slightly increase the price of our product then we can improve the quality of our product to increase the number of customers from our only rival company V," - A statement by the owner of company U.

Which of the following can be assumed from the given statement?

Question

Study the following information in which a statement is followed by five assumptions. Read carefully and answer the question below:

"If we slightly increase the price of our product then we can improve the quality of our product to increase the number of customers from our only rival company V," - A statement by the owner of company U.

Which of the following can be assumed from the given statement?

Accepted Answer

**Solution:**

1. The correct assumption is option (e) because the statement implies that by slightly increasing the price, the company can enhance product quality, which in turn will attract more customers from the rival company. This suggests that customers value better quality and are willing to pay a bit more for it.

2. Options (a), (b), (c), and (d) cannot be assumed because:
   - (a) The statement does not explicitly say quality cannot be improved without a price increase.
   - (b) There is no information about the quality comparison between company U and company V.
   - (c) It is not stated that improving quality is the only way to attract customers.
   - (d) The price of company V’s product is not mentioned.

3. Therefore, only option (e) logically follows from the given statement.

**Answer:** Superior quality even at a slightly higher price will definitely increase the demand for the product in the market.

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