<11{7[2(03)79]}> Looking to increase the profits of his lemonade stand, Johann doubled the price of a cup of lemonade from 25 cents to 50 cents. This clearly shows Johann’s lack of business sense, for now he’ll almost certainly sell fewer cups at the new price and therefore make less money than before.
The argument above assumes that (Points : 1)
Johann is looking to double the profits of his lemonade stand
the price increase will likely put Johann out of business
profits from the price increase will not offset the money lost when fewer cups are sold
even if Johann sells more cups at the new price than he did at the old price, he’ll still lose money on the lemonade stand
The argument above assumes that profits from the price increase will not offset the money lost when fewer cups are sold.
To understand why the argument assumes this, we can break down the argument:
1. Johann doubled the price of a cup of lemonade from 25 cents to 50 cents.
2. The argument claims that Johan's lack of business sense is evident because he will almost certainly sell fewer cups at the new price.
3. The argument further claims that selling fewer cups at the new price will result in making less money than before.
Based on this, the assumption can be identified as: profits from the price increase will not offset the money lost when fewer cups are sold.
To get to this answer, you needed to identify the logical flow of the argument and understand the underlying assumption being made.