GMAT Exam  >  GMAT Questions  >  The Circle Multiplex has seen tremendous grow... Start Learning for Free
The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.
Which of the following statements is an assumption made by the management of The Circle Multiplex?
  • a)
    The Circle Multiplex has lower ticket prices than other Multiplexes in the region.
  • b)
    Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.
  • c)
    No existing customer of The Circle Multiplex is going to shift for minor economic considerations.
  • d)
    Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.
  • e)
    Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
The Circle Multiplex has seen tremendous growth in the number of custo...
The situation described in the question is that The Circle Multiplex has experienced significant growth in the number of customers and has been consistently booking shows at full capacity for the past seven months. The management wants to increase profits by raising ticket prices slightly above the competition's prices, believing that they will still be able to fill the capacity.
The assumption made by the management is the underlying belief that a significant number of customers of The Circle Multiplex are not extremely sensitive to ticket prices. In other words, the management assumes that customers will be willing to pay slightly higher prices and still choose The Circle Multiplex over other options.
Let's now evaluate each answer choice:
(A) The Circle Multiplex has lower ticket prices than other Multiplexes in the region.
This statement is not necessarily an assumption made by the management. It could be true or false, but it doesn't directly relate to the assumption being made about customer sensitivity to ticket prices.
(B) Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.
This statement is also not directly related to the assumption being made. It suggests that ambiance is important, but it doesn't address the assumption about customer sensitivity to ticket prices.
(C) No existing customer of The Circle Multiplex is going to shift for minor economic considerations.
This statement is not directly related to the assumption either. It talks about existing customers not shifting for minor economic considerations but doesn't address the assumption about customer sensitivity to ticket prices.
(D) Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.
This statement directly addresses the assumption made by the management. It suggests that the management believes that a significant number of customers are not extremely sensitive to ticket prices. If this assumption is false, then raising ticket prices may result in a decrease in customers rather than an increase in profits.
(E) Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.
This statement is not related to the assumption being made by the management. It provides information about other multiplexes' capacity utilization but doesn't address the assumption about customer sensitivity to ticket prices.
Based on the above analysis, the correct assumption made by the management of The Circle Multiplex is (D) Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.
Attention GMAT Students!
To make sure you are not studying endlessly, EduRev has designed GMAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in GMAT.
Explore Courses for GMAT exam

Similar GMAT Doubts

Top Courses for GMAT

The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer?
Question Description
The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer?.
Solutions for The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT. Download more important topics, notes, lectures and mock test series for GMAT Exam by signing up for free.
Here you can find the meaning of The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice The Circle Multiplex has seen tremendous growth in the number of customers since it signed an exclusive contract with a leading distributor. For the last seven months, unlike previous months, almost all the shows have been booked completely. A number of customers have even been turned away for most of the shows. Consequently, the management proposes to increase its profits by raising the ticket prices slightly above the competition’s as it believes that invariably the Multiplex will be able to fill its capacity.Which of the following statements is an assumption made by the management of The Circle Multiplex?a)The Circle Multiplex has lower ticket prices than other Multiplexes in the region.b)Factors other than ticket prices such as ambiance are very important for the customers in choosing the Multiplex.c)No existing customer of The Circle Multiplex is going to shift for minor economic considerations.d)Not a significant number of customers of The Circle Multiplex are extremely sensitive to ticket prices.e)Most other Multiplexes around The Circle Multiplex run most of the shows with less than half the capacity filled.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
Explore Courses for GMAT exam

Top Courses for GMAT

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev