The supply of iron ore, the most important component in steelmaking, has been steadily declining
in Marco city. This has forced steel manufacturing units in Marco city to source iron ore from far
off mines leading to an increase in their transportation costs. Because transportation costs make
up a large chunk of the total cost of steelmaking, the steel manufacturers in Marco city have had
no option but to increase the selling price of their steel. This has in turn led to an increase in the
retail price of utensils and other articles of daily use made of steel. Since the retail consumers now
have to pay more for these steel items, while their earnings remain unchanged, they have decided
to cut down on their non essential expenditure such as that on movie tickets. This has led movie
theatres in Marco city to reduce their ticket prices.
Which of the following provides the most support for the assertion that the prices of movie tickets
in Marco city will continue to decline in future?
(A) The people of Marco city will not be willing to cut down their expenditure on eating out
(B) After the inauguration of the Goldport Bridge, expected to happen very soon, the transportation costs to Marco city will be halved
(C) There are no blockbuster movies with stellar star casts lined up for release anytime soon
(D) The supply of iron ore to Marco city is expected to go down even more in the near future
(E) Residents of Marco city view movie tickets as non essential items of expenditure
KUDOS is the good manner to help the entire community.