Approach: Anytime I see profitability, I think Profit = Revenue - Costs. Revenue is driven by Price and Quantity and do not Costs - Variable and Fixed (typically never goes in this level of depth for GMAT, per what I have seen) . (Obviously, there are many many more real world situations but just a framework to think through)
Here, if the quantity is decreasing, I am expecting something that will impact the price e.g. higher quality or something that will hit the costs e.g. costs of operations
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Here, if the quantity is decreasing, I am expecting something that will impact the price e.g. higher quality or something that will hit the costs e.g. costs of operations
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