Statement–Assumption — “This year most shops and department stores are offering prizes and discounts on purchases to attract customers.” Assumptions: I. Shops have earned so much profit that they now share it with customers. II. Goods are available in plenty but sales are not growing fast enough; incentives are needed to stimulate demand.

Introduction / Context:Retailers announce incentives “to attract customers.” We must identify the assumption that makes this marketing move rational.

Given Data / Assumptions:

• Promotions are demand-stimulating tools (price cuts, freebies, sweepstakes).
• Retailers deploy promotions when facing sluggish footfall, inventory buildup, or competition.
• No claim is made about past profitability.

Concept / Approach:If stores give discounts “to attract customers,” the implicit belief is that sales volume is insufficient relative to targets or stock, and price/value incentives can improve throughput. The notion that they are doing this because they “earned a lot of profit” is speculative and unnecessary; promotions often occur in lean periods or competitive wars.

Step-by-Step Solution:1) Test I: High profits leading to sharing is not required; it is neither stated nor typical of discount cycles aimed at volume.2) Test II: Assuming slack demand or the need to stimulate sales directly supports the stated purpose “to attract customers.” Hence II is implicit.

Verification / Alternative check:Retail economics: promotions increase price elasticity, clear inventory, and draw traffic in competitive markets.

Why Other Options Are Wrong:I-only/Both/Either force an unnecessary profit-sharing narrative; “neither” denies the marketing logic.

Common Pitfalls:Equating “discounts” with “surplus profit” rather than “need to move goods or defend share.”

Final Answer:if only assumption II is implicit.