Explanation
Reading the question: we notice that this is an "explain"
question. There's not an argument here, but rather two facts separating by the
phrase "by contrast." we try to sum up the contrast. It's that discount retail:
1) can do well in times of hardship, but 2) can also suffer in times of
hardship. An explanation will contradict nothing so far and it will connect to
both points, the dual success/failure.
Applying the filter: Choice (A) doesn't address the dual
success/failure aspect. Nor does (B). Choice (C) sounds promising; when
discount stores are doing well, the costs of wages goes up; could that be
enough to push their business down? But we look back at the prompt, and it says
in the second part that "business at discount stores stops improving and may
even suffer." It seems to be talking about the revenue side, not the cost side,
especially given what precedes, and (C) doesn't explain that. Choice (D) works:
consumers spend more at discount stores under some hardship, but less under
severe hardship. Choice (E) discusses only one side of the contrast. The
correct answer is (D).
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