United States demand for newsprint – the type of paper used in newspaper manufacturing – is plunging. Newspaper advertising and circulation are in steep decline, and in response, many newspaper publishers have moved to smaller pages, while others are slashing the number of total pages they publish each day. Yet most newsprint manufacturers have raised prices in the face of this decline and have even been unfazed by cuts in orders from the major daily newspapers in the U.S.
Which of the following would, if true, most help to account for the manufacturers’ response to cuts in orders by U.S. newspapers?

Question

Examsnet · Accepted Answer

Correct Answer is :  Certain kinds of direct mail advertising can be more cheaply printed on newsprint than on other kinds of paper

GMAT Verbal Reasoning Practice Test 7