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Verbal·Information and Ideas·Inferences

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For brands of bottled iced tea sold in Australia, the mean line length—the number of products sharing a brand name—is 10.2, while for brands of cookies, the mean line length is 24.1. Elena Markovic and colleagues examined 203 months of economic data to investigate whether line length mediates the effects of economic expansions and contractions on brand equity (the value, manifesting as a price premium, that a brand has in consumers’ minds due to its perceived quality and other associations). They noted that it becomes more difficult for consumers to evaluate brand quality as line length increases and that consumers show high risk aversion during economic downturns. Markovic and colleagues would thus expect that       

Which choice most logically completes the text?

A

brand-related price premiums for bottled iced tea will likely show less variation across economic contractions and expansions than such premiums for cookies will.

B

brands of bottled iced tea are more likely to increase their line lengths during economic contractions than brands of cookies are.

C

brand-related price premiums for bottled iced tea are more likely to be maintained during economic contractions than are such premiums for cookies.

D

brands of bottled iced tea will likely have higher brand equity than brands of cookies will during economic contractions but not during economic expansions.