Premise given is : In Norvia, having market-driven prices - lower energy use despite rising incomes. In Estera, having subsidized energy has higher energy use. Analysts suggest that Norvians respond more to price signals, while subsidies in Estera may discourage conservation
Conclusion for me is household energy use patterns differ because of pricing structures and subsidies.
The possible inference will be which is closest to saying that pricing structures may play a significant role in shaping household responses to energy costs
Evaluating options
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.
Seems correct. Aligns with premise
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. Not Correct. Not the most reasonable overall inference. It only focuses on Norvia and ignores the contrast
C. If Norvia were to implement residential energy subsidies similar to Estera’s, energy consumption would likely return to pre-decline levels. Seems incorrect
Unsupported and hypothetical, prediction not justified by premise.
D. Estera’s increase in household energy use cannot be attributed to factors other than its subsidy policy. Seems Incoorect.
This is way too extreme as per me; passage never rules out other factors.
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. Seems incorrect
Speculative. Introduces ideas not in the passage.
Hence answer should be A.
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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