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Question:

The sentences given in each question, when properly sequenced, form a coherent paragraph. Each sentences is labelled with a letter. Choose the most logical order of sentences from among the four given choices to construct a coherent paragraph.

Branded disposable diapers are available at many supermarkets and drug stores.
If one supermarket sets a higher price for a diaper, customers may buy that brand elsewhere.
By contrast, the demand for private-label products may be less price sensitive since it is available only our corresponding supermarket chain
So, the demand for branded diapers at any particular store may be quite price sensitive.
For instance, only SavOn Drugs stores sell SavOn Drugs diapers.
Then, stores should set a higher incremental margin percentage for private-label diapers.

Explanation:

From the options, the paragraph begins with sentence A. Sentences A, B and D talk about branded diapers and hence are related. Only option 3 gives us this sequence (ADB). A contrast to the more price sensitiveness shown in B is given in C. An example of private-label product (introduced in C) is given in D, therefore CD is a pair. F concludes it (then) and therefore, the sequence is CEF.
Hence, the correct answer is option 3.

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