1000 CR Test I # 17

[jrbrown2]

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.

Please explain why? OA will come later.

[jayhawk2001]

The argument states that total number of cars sold has decreased while
average car price has increased.

A - used cars are out of scope
B - Doesn't explain the increase in average car price. If tax reduction
is expected, more cars are likely to be sold ?
D - Doesn't explain the increase
E - out of scope

C indicates that the high-end cars are sold in similar numbers as last
year. So, if total number of cars sold has gone down, the proportion
of high-end expensive cars to the total number of cars has increased.
This can explain the increase in average price.

[jrbrown2]

OA is C

[micheal_kr]

I agree with official answer