For many years, alcohol producers followed a self-imposed industry ban on advertising on television. Eventually, some producers broke the ban and began advertising their products on television. The producers who advertised on television generally charged less for their products, and so if all producers began advertising in this fashion, overall costs to consumers would be lower than if they did not advertise.
Which of the following must be true if the statements above are true?(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.(C) When the self-imposed ban was first broken, those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

Question

29-01-2020
Business

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For many years, alcohol producers followed a self-imposed industry ban on advertising on television. Eventually, some producers broke the ban and began advertising their products on television. The producers who advertised on television generally charged less for their products, and so if all producers began advertising in this fashion, overall costs to consumers would be lower than if they did not advertise.
Which of the following must be true if the statements above are true?(A) More consumers will drink alcohol if there are more alcohol advertisements on TV.(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV.(C) When the self-imposed ban was first broken, those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban.(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV.(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices.

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jepessoa jepessoa · Answer 1 · 2020-01-29T13:49:23+01:00

Answer:

C) When the self-imposed ban was first broken, those alcohol producers who chose not to advertise on television generally charged more for their products than alcohol producers who joined in breaking the ban. FOLLOWS THE SAME ARGUMENT AS THE TEXT.

Explanation:

(A) More consumers will drink alcohol if there are more alcohol advertisements on TV. THIS IS NOT NECESSARILY TRUE OR FALSE, THE TEXT MAKES NO REFERENCE TO THIS POINT.

(B) Alcohol producers who currently advertise their products on television will raise their prices if other producers decide to advertise on TV. THE TEXT CLEARLY STATES THAT THOSE WHO ADVERTISE ON TV HAVE LOWER PRICES, EXACTLY THE OPPOSITE.

(D) If there had not been a self-imposed ban on TV advertising,all alcohol producers would have advertised on TV. NOT ALL THE COMPANIES IN THE WORLD ADVERTISE THEIR PRODUCTS OR SERVICES ON TV.

(E) If additional alcohol producers decide to advertise and lower their prices,the alcohol producers who do not advertise on TV will lower their prices. IF CURRENTLY THAT ISN'T HAPPENING, WHY SHOULD IT HAPPEN IN THE FUTURE?