GMAT Critical Reasoning
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Source: Knewton
Level: 3
A certain city offers publicly owned, desirable billboard-advertising space at heavily discounted monthly rates to locally owned businesses. Since the implementation of this policy, the city has increased the amount of billboard space sold per month. Nevertheless, the city could increase its revenues by revoking these discounts.
Which of the following, if true, most strongly supports the claim above regarding the city's revenues?
- A The amount of discount generally offered is carefully calculated to represent the minimum needed to drive sales to local businesses.
- B The discount was announced through select news channels and websites, but did not receive sufficient coverage for many local businesses to hear about it.
- C Many local businesses sub-lease their billboard space to non-local businesses at a significant markup.
- D For established local businesses, the purpose of this promotion is to allow such local businesses to fortify their market position against new chain stores that generally have better access to high-visibility advertisement space.
- E Prior to the implementation of the discount, many city-owned billboards went empty for lack of interested buyers.