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 avg price paid for a new car has risen dramatically.
Which of the following, if true best explains the increase in the avg price of a new car?
A) The price of the used car has climbed steadily in the past 10 yrs.
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 cars has been unaffected by the current economic conditions.
D) Economic conditions are supposed to get significantly worse before the end of the year.
E) Low demand for trucks and vans has lead to lower production in the factories.