Question

The cloth industry is often tormented and driven into losses, due to insects damaging the fabric. Carpet beetles, cockroaches, crickets etc, all contribute to the nuisance. As a result, storage areas are thoroughly washed, debris and firewood is cleaned, and moisture is decreased. However, store XYZ, did not undertake these measures, and hence, their cloth was damaged. This damaged cloth was then sold to customers, which prompted furious reactions. XYZ store, in an attempt to increase profits, reacted by offering a 50% discount on all their goods.

Which of the following is an appropriate reason for the discount being given?

1. The government would take action against the store, on the grounds of violation of Consumer Rights, if the discontent had gone on.
2. The decrease in revenue, bought about by the discontent, would be lesser than the increase in revenue bought about by the discount.
3. Long time survival of the company depends on them retaining existing consumers.
4. None of the above.

Answer 1

Correct Answer - Option 2 : The decrease in revenue, bought about by the discontent, would be lesser than the increase in revenue bought about by the discount.

Option 1 is an assumption of the 'legality' of the process, which still does not provide an answer, as what is being dealt with, is the issue of revenue being increased. Hence, option 1 is wrong. Option 2 is correct, as this provides a direct reason for the discount being given. Option 3 is wrong, as long time survival of the company, is also not the issue at hand. 

Hence, option 2 is correct.