Q: Country N's oil production is not sufficient to meet its domestic demand. In order
to sharply reduce its dependence on foreign sources of oil, Country N recently
embarked on a program requiring all of its automobiles to run on ethanol in addition
to gasoline. Combined with its oil production, Country N produces enough
ethanol from agricultural by-products to meet its current demand for energy.
Which of the following must be assumed in order to conclude that Country N will
succeed in its plan to reduce its dependence on foreign oil?
(A) Electric power is not a superior alternative to ethanol in supplementing
automobile gasoline consumption.
(B) In Country N, domestic production of ethanol is increasing more quickly
than domestic oil production.
(C) Ethanol is suitable for the heating of homes and other applications aside
from automobiles.
(D) In Country N, gasoline consumption is not increasing at a substantially
higher rate than domestic oil and ethanol production.
(E) Ethanol is as efficient as gasoline in terms of mileage per gallon when used
as fuel for automobiles.
Not able to understand the reasoning behind the right answer.