by giladedelman Sun Nov 25, 2012 8:07 pm
Note: this post has been updated after the original poster pointed out that I made a mistake!
You're right that (E) requires an unwarranted assumption; put another way, the passage does not support the idea that there is "widespread familiarity with new ways of storing information." It's just not in the passage.
(C) is correct because the last paragraph tells us that "the competitive pressure" spurred by newer firms that can respond to literary agents' demands will force traditional publishers to shift over to digital publishing.
Or, as you said in another post, "traditional publishers will be hesitant to change to the new model but will eventually do so because they could lose authors if they did not change. Literary agents could demand more $ for the authors (which those subscribed to the new method will be able to pay) forcing the others to agree to the new model." Well put!
(A) is out because "changing literary tastes" is totally out of scope.
(B) is incorrect because although a perk of the new technology is to make it easier to keep books in print, this is not the reason why publishers will adopt that technology.
(D) is incorrect because the passage never talks about innovative marketing strategies.
Hope that helps!