Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices -make deals-to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information the dealer about the product and the consumer about his true desires. (2006)
Relations between the factory and the dealer are distant and usually strained as the factory tries to force cars on the dealers to smooth out production. Relations between the dealer and the customer are equally strained because dealers continuously adjust prices -make deals-to adjust demand with supply while maximizing profits. This becomes a system marked by a lack of long-term commitment on either side, which maximizes feelings of mistrust. In order to maximize their bargaining positions, everyone holds back information the dealer about the product and the consumer about his true desires. (2006)
The correct option is E As a result, everyone loses in the long run.
Option: (e) The passage emphasizes on how, to fulfill their short term expectations, factories, dealers and customers are not true to themselves. It is then that their relationships start becoming strained. This strain leads to feelings of mistrust and lack of commitment. So, the longer this continues, the more the chances of everyone succeeding to this vicious trap and they would soon realize that they have sacrificed long-term stability and gains for short-term benefits. Hence option (e) is the correct answer choice. Option (d) is too specific to the industry. Option (b) does not add anything. Option (a) takes into account only 2 players and repeats what is stated in the passage about "dealers adjusting prices and making deals" in the term "deal making". Option (c) seems close but can be eliminated as the word "adversary" is a very strong word.
Option: (e)
The passage emphasizes on how, to fulfill their short term expectations, factories, dealers and customers are not true to themselves. It is then that their relationships start becoming strained. This strain leads to feelings of mistrust and lack of commitment. So, the longer this continues, the more the chances of everyone succeeding to this vicious trap and they would soon realize that they have sacrificed long-term stability and gains for short-term benefits. Hence option (e) is the correct answer choice. Option (d) is too specific to the industry. Option (b) does not add anything. Option (a) takes into account only 2 players and repeats what is stated in the passage about "dealers adjusting prices and making deals" in the term "deal making". Option (c) seems close but can be eliminated as the word "adversary" is a very strong word.
