Reading Comprehension (RC) | Re: Extensive research has shown that the effects of short-term price prom

Question3

The author thinks that price promotions have an "effect on the bottom line" -- abad effect. They run at a loss.

Question 3 asks us about evidence to support this claim. We find that evidence earlier in the final paragraph: "price promotions are generally run at a loss, otherwise there would be more ofthem. "

Here, the author makes a connection between the frequency of price promotions and their effect on the bottom line. He/she supports the claim that price promotions cause a loss by citing the relatively low frequency of such promotions. If the promotions caused a huge profit, then they would be run more frequently.

So, "the frequency with which price promotions occur," as stated in (B), is evidence that the price promotions run at a loss.

I hope thathelps!