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Pdgmat2010
- Master | Next Rank: 500 Posts
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- Joined: Sun Feb 21, 2010 6:00 am
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- GMAT Score:710
In the past year, there has been a large drop in the number of new cars sold, due to harsh economic conditions in the marketplace and high taxes. At the same time, the average price paid for a new car has risen dramatically.
Which of the following, if true, best explains the increase in the average price of a new car?
(A) The price of used cars has climbed steadily over the past ten years.
(B) There will be a tax reduction later in the year which is expected to aid moderate and low income families.
(C) The market for expensive car has been unaffected by the current economic conditions.
(D) Economic conditions are expected to get significantly worse before the end of the year.
(E) Low demand for trucks and vans has led to lower production in the factories
Source : 1000 CR
OA C
My reasoning is as below
A. used cars not in scope of d argument. reject
B. tax reduction has no effect on why prices of new cars have risen steadily
D. This does not explain why new cars will continue to be expensive
E.Trucks n vans r out of scope
now, C : if the prices of cars wont be affected by poor financial conditions, then it is the only reasonable explanation for the above argument.
I had to use POE to arrive at C as all others were completely not related to the paradox.
Pls state your reasoning while solving.
Which of the following, if true, best explains the increase in the average price of a new car?
(A) The price of used cars has climbed steadily over the past ten years.
(B) There will be a tax reduction later in the year which is expected to aid moderate and low income families.
(C) The market for expensive car has been unaffected by the current economic conditions.
(D) Economic conditions are expected to get significantly worse before the end of the year.
(E) Low demand for trucks and vans has led to lower production in the factories
Source : 1000 CR
OA C
My reasoning is as below
A. used cars not in scope of d argument. reject
B. tax reduction has no effect on why prices of new cars have risen steadily
D. This does not explain why new cars will continue to be expensive
E.Trucks n vans r out of scope
now, C : if the prices of cars wont be affected by poor financial conditions, then it is the only reasonable explanation for the above argument.
I had to use POE to arrive at C as all others were completely not related to the paradox.
Pls state your reasoning while solving.
