Question 33

The size of Brannick's would allow it to offer lower prices, possibly forcing the small shops out of business.

Brannick's Superstore's size and ability to offer lower prices would likely undermine the profitability of the small shops near Juniper Estates, as indicated in the extract. The email highlights that residents would likely choose to shop at Brannick's due to its competitive pricing, which poses a significant threat to local businesses.

A) The size of Brannick's would allow it to offer lower prices, possibly forcing the small shops out of business.

This option accurately captures the central concern expressed in the email regarding the impact of Brannick's Superstore on local businesses. The extract mentions that Brannick's can sell for less than the small shops, which could lead to a decline in customers for those businesses, ultimately threatening their viability.

B) Brannick's would attract new customers to the area, bringing business to the small shops.

This option is incorrect as the extract emphasizes that Brannick's presence would likely draw customers away from local shops rather than bringing new business to them. The email points out that residents would likely shop at Brannick's instead of supporting the existing small businesses, which contradicts the notion that it would enhance their profitability.

C) The small shops charge higher prices than Brannick's would, potentially allowing them to offer better wages to their workers.

This statement is misleading as it does not align with the concerns expressed in the email. The extract indicates that the small shops cannot compete with Brannick's lower prices, suggesting that their higher prices would not lead to better wages. Instead, the competition from Brannick's could jeopardize the financial stability of the small shops.

D) The small shops carry products too specialized for Brannick's, ensuring the loyalty of their customers.

This option fails to reflect the reality presented in the extract. While small shops might offer specialized products, the dominant issue highlighted is that customers will gravitate towards Brannick's due to its lower prices, indicating that loyalty alone may not be enough to sustain these businesses in the face of such competition.

Conclusion

Option A is definitively correct as it encapsulates the primary concern raised in the email regarding the competitive disadvantages faced by local shops due to the price advantages of Brannick's Superstore. All other options misrepresent the relationship between the arrival of Brannick's and the potential impact on small businesses, failing to grasp the economic implications laid out by the residents of Juniper Estates.