Which of the following most logically completes the passage below?

One name-brand cereal manufacturer is about to reduce wholesale prices for its cereals by 20 percent because consumers have been switching from its cereals to cheaper store brands. The success of this strategy relies on the assumption that supermarkets will pass on all of the savings by lowering the prices they charge consumers for the manufacturer's cereals. Although supermarkets usually pass on such savings, in this case it is likely that supermarkets not do so because __________.


several other name-brand cereal manufacturers are about to reduce the wholesale prices of their cereals

the average price per box of name-brand cereals has increased significantly in the last 10 years

total annual sales of cereal—including both name-brand and store-brand cereals—have increased over the past 10 years

supermarkets make far more profit on sales of store-brand cereals than on sales of name-brand cereals

the current prices of the manufacturer's cereals are comparable to the prices of name-brand cereals produced by other cereal manufacturers

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Prep2012-CR

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