Find all School-related info fast with the new School-Specific MBA Forum

It is currently 10 Jul 2014, 06:17

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

In the past year, there has been a large drop in the number

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 06 Apr 2008
Posts: 452
Followers: 1

Kudos [?]: 37 [0], given: 1

In the past year, there has been a large drop in the number [#permalink] New post 02 Aug 2008, 04:06
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.
Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesVeritas Prep GMAT Discount Codes
Senior Manager
Senior Manager
avatar
Joined: 23 May 2006
Posts: 328
Followers: 2

Kudos [?]: 48 [0], given: 0

GMAT Tests User
Re: RC-cars [#permalink] New post 02 Aug 2008, 09:01
IMO C

Average price of cars (A) = Price of New normal cars (x) + Price New luxury cars (y) / no. of cars sold (n). If n drops and Y has remained steady then A will rise.
Director
Director
avatar
Joined: 20 Sep 2006
Posts: 658
Followers: 2

Kudos [?]: 58 [0], given: 7

GMAT Tests User
Re: RC-cars [#permalink] New post 02 Aug 2008, 12:00
nmohindru wrote:
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.


IMO C.

last to last year: more economic cars sold. more cars with an average price of economic car (say 15k)
last year: less cars sold. but all were expensive cars with an average price of (say 150k)

So even though less cars were sold... the average price was very high.
Re: RC-cars   [#permalink] 02 Aug 2008, 12:00
    Similar topics Author Replies Last post
Similar
Topics:
1 In the past year, there has been a large drop in the number Nihit 17 03 Sep 2008, 02:11
In the past year, there has been a large drop in the number hanumayamma 10 16 Jul 2008, 21:44
In the past year, there has been a large drop in the number sondenso 6 26 Feb 2008, 00:55
In the past year, there has been a large drop in the number sperinko 9 06 Aug 2006, 15:07
In the past year, there has been a large drop in the number ywilfred 1 15 Oct 2005, 12:17
Display posts from previous: Sort by

In the past year, there has been a large drop in the number

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.