GMAT Critical Reasoning (CR) | Corporate Strategist: It is generally true that a reduction

Corporate Strategist: It is generally true that a reduction in the price of a good results in an
increase in the demand for this product, leading to higher sales.However, I believe that the
management’s strategy of stimulating the sales of our luxury cars by implementing a
series of aggressive price reductions is seriously flawed. Dramatic price reductions on our
luxury cars will erode the image of exclusivity and premium quality associated with these
vehicles.If our cars become substantially cheaper, they will no longer represent the
symbol of status and financial success, thus losing their main appeal to our customers.