PrepTest 67, Section 3, Question 17

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In order to save money, many consumers redeem coupons that are distributed by retail stores. However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products�even after lower prices available on coupon-discounted products are factored in. This is because producing and distributing coupons usually costs a great deal. To compensate for this expense without reducing profits, retail stores must pass it on to consumers.

In order to save money, many consumers redeem coupons that are distributed by retail stores. However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products�even after lower prices available on coupon-discounted products are factored in. This is because producing and distributing coupons usually costs a great deal. To compensate for this expense without reducing profits, retail stores must pass it on to consumers.

In order to save money, many consumers redeem coupons that are distributed by retail stores. However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products�even after lower prices available on coupon-discounted products are factored in. This is because producing and distributing coupons usually costs a great deal. To compensate for this expense without reducing profits, retail stores must pass it on to consumers.

In order to save money, many consumers redeem coupons that are distributed by retail stores. However, in general, retail stores that distribute and accept store coupons as a way of discounting the prices on certain products charge more for their products, on average, than other retail stores charge for the same products�even after lower prices available on coupon-discounted products are factored in. This is because producing and distributing coupons usually costs a great deal. To compensate for this expense without reducing profits, retail stores must pass it on to consumers.

Question
17

Which one of the following can be properly inferred from the information above?

Many consumers who redeem coupons save little if any money, overall, by doing so.

Retail stores that distribute coupons generally compensate for the expense of producing and distributing coupons by charging higher prices for certain products.

The profits of retail stores that use coupons are not significantly lower, on average, than the profits of similar stores that do not use coupons.

At least some retail stores that do not use coupons do not have expenses that they pass on to consumers.

The undiscounted price charged for a good for which a retail store offers a coupon will be higher than the price charged for that same good by a retail store that does not offer a coupon for it.

B
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