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XAT 2020 Question 34

This is a detailed step-by-step solution for XAT 2020 Question 34. Understand the concept, common mistakes, and expert tips to solve similar questions in XAT exam.

XAT

We have to choose the option that will provide the best course for the Small Shop to increase the variety of products.
Option B discourages the increase in variety and thus, can be rejected.
Option C mentions a minimum order every month, which could lead to the problem of unsold products. Hence, it can be dismissed.
Option D does not solve the problem of unsold products and also adds the cost of new rental space.
Option E says to exclusively sell expensive products. It will not increase the variety. Also, the expensive products will only form 10% of the total revenue, which is insignificant for such a drastic change.
Option A is the best option, as it ensures the increase in variety as well as solves the problem of unsold products.
Hence, the answer is option A.

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