Which of the following, if true, most strongly suggests that an enhanc

QUESTION

Which of the following, if true, most strongly suggests that an enhanced-water product would NOT increase overall profits for Red Bull?

A) Retailers would display the enhanced water near other enhanced-water drinks.
B) Glacéau’s VitaminWater brand has a variety of endorsements from celebrities famous for being unconventional.
C) The customers who would purchase Red Bull enhanced water would be likely to reduce their purchases of energy drinks.
D) The current market for energy drinks is larger than the current market for enhanced water but smaller than the current market for bottled water.
E) Sales of Red Bull Cola were below Red Bull’s expectations.

ANSWER

Answer: C
Explanation: C) If Choice C were true, then the money Red Bull makes from enhanced water could be offset by reduced revenues from energy drinks. So Choice C, if true, suggests that an enhanced-water product would not increase overall profits. Choice A makes it sound as through Red Bull’s strength might carry over to the enhanced-water market. So Choice A goes in the other direction. Choice B tells us how Glacéau has done well, but this doesn’t tell us how Red Bull would do. Choice D tells us about the size of the markets, but success in a small market should still increase overall profits. So the current size of the market does not suggest that enhanced water would not increase overall profits. Choice E tells us about Red Bull Cola, but we don’t know why it failed to meet expectations, so this fact does not imply anything about success with enhanced water.