Question: Six months or so after getting a video recorder, many early buyers apparently lost interest in obtaining videos to watch on it. The trade of businesses selling and renting videos is still buoyant, because the number of homes with video recorders is still growing. But clearly, once the market for video recorders is saturated, businesses distributing videos face hard times.

Which of the following, if true, would most seriously weaken the conclusion above?

(A) The market for video recorders would not be considered saturated until there was one in 80 percent of homes.
(B) Among the items handled by video distributors are many films specifically produced as video features.
(C) Few of the early buyers of video recorders raised any complaints about performance aspects of the new product.
(D) The early buyers of a novel product are always people who are quick to acquire novelties, but also often as quick to tire of them.
(E) In a shrinking market, competition always intensifies and marginal businesses fail

“Six months or so after getting a video recorder, many early buyers” - is a GMAT question about critical thinking. A candidate may choose to either find evidence that would undermine the argument or present an argument that is illogical in order to respond to the question. The GMAT critical reasoning gauges a candidate's aptitude for logic and analysis. Candidates must identify the argument's advantages and disadvantages as well as its logical flaws for this topic. Out of the 36 GMAT verbal questions, 10–13 critical reasoning questions are found.

Answer: (D)
Explanation: Many early purchasers of video recorders reportedly lost interest in acquiring videos to watch on them six months or so after purchasing them. Because there are more and more homes with video recorders, the market for companies that sell and rent videos is still strong. However, it is evident that businesses that distribute videos will face difficulties once the market for video recorders is saturated.

To determine the best answer, let's examine each choice in isolation. If true, the statement in the correct option would seriously undermine the conclusion stated above.

Option – A : Incorrect
According to this option, the market for video recorders won't be deemed saturated until they are present in 80% of homes. This fact is irrelevant. As a result, this option is rejected.

Option – B : Incorrect
It states that many films created specifically as video features are among the products handled by video distributors. This is likewise irrelevant. As a result, this option is rejected.

Option – C : Incorrect
It states that few of the first-time purchasers of video recorders voiced any complaints about the new product's performance. That is helpful to know. But this has nothing to do with market saturation or future low levels of video sales. As a result, this option is rejected.

Option – D : Correct
It states that the first customers of a novel product are always those who are quick to buy novelties but also frequently just as quick to tire of them. This is one reason why videos might continue to be successful even after the market has reached saturation. After six months, if more people still purchase videos, video distribution companies might not experience financial difficulties. As a result, this option is the right choice.

Option – E : Incorrect
It states that marginal businesses fail in a market that is contracting because competition always grows. Although this is useful to know, it is also irrelevant. In addition, rather than being competitors, video recorders and video distribution get benefits from one another. As a result, this option is rejected.

From the explanations given above, it is clear that the fourth option is the right answer.

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