Shereen cosmetics sometimes discount the price of its premium eye shadows to retailers for a promotion period when the product is advertised to consumers. Such promotions often result in a dramatic increase in amount of premium eye shadows sold by the manufacturers to retailers. Nevertheless, the manufacturers could often make more profit by not holding the promotions.
Which of the following, if true, most strongly supports the claim above about the manufacturers' profit?

Question

Examsnet · Accepted Answer

Correct Answer is :  During such a promotion retailers tend to accumulate in their warehouses inventory bought at discount; they then sell much of it later at their regular price.

GMAT Verbal Reasoning Practice Test 1