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Question
In the past year, there has been a large drop in the member of new cars sold due to harsh economic conditions in the market place 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?
The price of used car has climbed steadily over the past ten years.
There will be tax reduction later in the year which is expected to aid moderate and low income families.
The market for expensive car has been unaffected by the current economic conditions.
Economic conditions are expected to get significant worse before the end of the year.
ANS : 4
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