Here, we're comparing how different market ideologies impact energy use. Norvia - market driven and less regulated - uses less energy. Estera - despite heavy subsidy - has a significant increase in consumptions. This, analysts say, is proves Norvia is responding to price shifts (increases = lesser usage), while Estera's subsidies cause more use of energy than required / lesser conservation.
The inference will be: A. Because we do find the price element - common to both market shifts and subsidies - expressed in the passage. So this is the answer.And the answer isn't any of the other choices because:
B: The link between Norvia's per-capita consumption and its connection with economic growth is a bit of a drag - also, the idea of pricing structures is discussed, not inferred.
C: Norvia's change in approach may not have the same results - eliminate.
D: It can be, but we're talking about how subsidy has an impact in the first place - its bundling with other such factors won't change much.
E: We can disregard this for the exact same reason as D.
Bunuel
A comparison of Norvia and Estera reveals a sharp contrast in household energy use. In Norvia, where prices are market-driven and lightly regulated, households have used less energy over the past decade despite rising incomes. In Estera, where residential energy is heavily subsidized, household consumption has steadily increased. Analysts suggest that Norvians respond more to price signals, while Estera’s subsidies may have discouraged conservation.
Which of the following can be most reasonably inferred from the information above?
A. The contrasting energy consumption patterns in Norvia and Estera suggest that pricing structures may play a significant role in shaping household responses to energy costs.
B. Despite rising incomes in Norvia, energy consumption per capita has declined, indicating that economic growth alone does not necessarily lead to increased energy use.
C. If Norvia were to implement residential energy subsidies similar to Estera’s, energy consumption would likely return to pre-decline levels.
D. Estera’s increase in household energy use cannot be attributed to factors other than its subsidy policy.
E. While energy pricing appears to influence household consumption patterns, it may not be the sole factor driving differences in energy use between Norvia and Estera.
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