PT137.S4.Q17

PrepTest 137 - Section 4 - Question 17

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In order to save money, many consumers redeem coupons that are distributed by retail stores. ████████ ██ ████████ ██████ ██████ ████ ██████████ ███ ██████ █████ ███████ ██ █ ███ ██ ███████████ ███ ██████ ██ ███████ ████████ ██████ ████ ███ █████ █████████ ██ ████████ ████ █████ ██████ ██████ ██████ ███ ███ ████ ███████████████ █████ █████ ██████ █████████ ██ █████████████████ ████████ ███ ████████ ███ ████ ██ ███████ █████████ ███ ████████████ ███████ ███████ █████ █ █████ █████ ██ ██████████ ███ ████ ███████ ███████ ████████ ████████ ██████ ██████ ████ ████ ██ ██ ██ ██████████

Summary

Stores that offer coupons usually have higher average prices, even though the discounted items are cheaper with coupons.

Stores that offer coupons pass the cost of making and distributing the coupons on to customers.

Very Strongly Supported Conclusions

Stores that offer coupons usually raise their prices on some products in order to pass the cost of the coupons on to customers.

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17.

Which one of the following ███ ██ ████████ ████████ ████ ███ ███████████ ██████

a

Many consumers who ██████ ███████ ████ ██████ ██ ███ ██████ ████████ ██ █████ ███

Unsupported. Stores that offer coupons usually have higher average prices, but the prices of coupon-discounted products are still lower. Some consumers might only purchase coupon-discounted products from these stores, in which case they would save money.

b

Retail stores that ██████████ ███████ █████████ ██████████ ███ ███ ███████ ██ █████████ ███ ████████████ ███████ ██ ████████ ██████ ██████ ███ ███████ █████████

Very strongly supported. Stores that offer coupons usually raise their prices on some products in order to pass the cost of making and distributing coupons on to customers.

c

The profits of ██████ ██████ ████ ███ ███████ ███ ███ █████████████ ██████ ██ ████████ ████ ███ ███████ ██ ███████ ██████ ████ ██ ███ ███ ████████

Unsupported. We’re only given information about the average prices of stores that offer coupons versus those that do not. We don’t know anything about their profits.

d

At least some ██████ ██████ ████ ██ ███ ███ ███████ ██ ███ ████ ████████ ████ ████ ████ ██ ██ ██████████

Unsupported. Stores that don’t offer coupons generally have lower average prices than stores that do offer coupons. But they might still pass some expenses on to consumers.

e

The undiscounted price ███████ ███ █ ████ ███ █████ █ ██████ █████ ██████ █ ██████ ████ ██ ██████ ████ ███ █████ ███████ ███ ████ ████ ████ ██ █ ██████ █████ ████ ████ ███ █████ █ ██████ ███ ███

Unsupported. Stores with coupons tend to have higher average prices, but we don't know the prices of individual products. Coupon-discounted items might originally be the same price at both coupon and non-coupon stores, with coupon stores charging more for other products.

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