Section C – Verbal Ability and Logical Reasoning

 

79.  Unlike other retail outlets, where items are purchased in any number of units the customer wants, in super-markets items are grouped in bulk packages. This bulk buying offers saving to the customer. The option to buy at wholesale prices by buying in bulk makes super-markets a practical choice for budget-conscious consumers.

Which of the following is an assumption necessary to the author’s argument?

A.    Super-markets often have greater buying power and lower overhead costs, so they can offer a greater variety of products than regular retail outlets.

B.    Super-markets are often more conveniently located and have better parking facilities.

C.   The emergence of super-markets has caused many small retail stores to close down and thus eliminate competition.

D.   It is economically wise to buy single items since bulk packages seldom offer significant savings.

E.    The financial savings from purchasing bulk packages may outweigh the inconvenience of being unable to purchase in any number of units that suits the customers’ need.

 

Solution:

The author argues in favour of super-markets and against retail outlets. Any number of items can be purchased at a retail outlet. But, the author favours ‘super-markets’, which sell in bulk, because the bulk-buying saves for the budget- conscious. The assumptions he makes are (1) the customers want to buy more, (2) the money thus saved in bulk buying is greater than the convenience of buying any number of items. (I may want only one item but have to buy more at the supermarket. Although, there’s saving involved. I may not need so many items).                                                                                                                                                                        Choice (E)