StrengthenDiff: Medium

Logic Breakdown

Passage Summary: TV bosses are raising ad prices but aren't worried about losing customers because they believe the ads are still a great deal for the companies buying them.

Conclusion: Television advertising time will be just as easy to sell next fall as it was last fall despite a price increase.

Reasoning: Advertisers will continue to see profits from television commercials even with the 10 to 15 percent cost hike.

Analysis: The executives are assuming that as long as there is some profit to be made, the demand for ad space will remain perfectly stable. To strengthen this, we need to bridge the gap between 'still profitable' and 'no harder to sell.' Perhaps other forms of advertising are becoming even more expensive, or perhaps the profit margin on TV ads is so high that a 15% increase is negligible. Look for an answer that confirms advertisers have no better alternatives or that their demand is 'inelastic' regarding this price range.

Passage Stimulus

Passage Redacted

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5.

Which one of the following, if true, would most support the television executives' argument?

Correct Answer
E
If people are watching more TV—rising 2 percent every two months—ad exposure is increasing materially across the year. More viewing means more impressions and likely better returns, which supports that advertisers will continue to profit and that ad time won’t be harder to sell even with higher prices.
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