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

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Senior Manager
Joined: 07 Jul 2005
Posts: 399

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Location: Sunnyvale, CA
In the past year, there has been a large drop in the number [#permalink]

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15 Jun 2006, 20:07
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:10) correct 0% (00:00) wrong based on 1 sessions

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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.

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VP
Joined: 02 Jun 2006
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15 Jun 2006, 20:10
(C) The market for expensive car has been unaffected by the current economic conditions.

Average price paid can be skewed by the prices paid by the high end car buyers.

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VP
Joined: 07 Nov 2005
Posts: 1115

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Location: India

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15 Jun 2006, 20:26
Only C is in scope.
C implies that the proportion of expensive cars sold has increased pushing the average price of the total cars that are sold.

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SVP
Joined: 30 Mar 2006
Posts: 1728

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15 Jun 2006, 22:05
Will go with C.

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Senior Manager
Joined: 16 Apr 2006
Posts: 270

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15 Jun 2006, 22:31
Average price is getting affected by more sale of High end cars. Hence (C) is logical.

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Director
Joined: 26 Mar 2006
Posts: 628

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15 Jun 2006, 23:10
'C' is the best and only one that is relevant...

Clocked - 30 secs..

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Director
Joined: 16 Aug 2005
Posts: 937

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Location: France

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16 Jun 2006, 03:48
clean C
_________________

I believe its yogurt!

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Manager
Joined: 10 May 2006
Posts: 186

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Location: USA

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16 Jun 2006, 06:45
sgrover 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.

I'll go with C.

C - the only one that explains BOTH conditions: economic situation and high average price

A - does not incorporate information about the harsh economic situation
B - Irrelevant
D - Doesn't explain why average price paid went up
E - Lower production doesn't explain why average price went up

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Manager
Joined: 12 May 2006
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16 Jun 2006, 06:49
'C'

The other options are far off the scope of the CR. So much that it almost is tempting to choose one, but then common sense kicks in...

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Current Student
Joined: 29 Jan 2005
Posts: 5201

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16 Jun 2006, 07:19
(C) is clearly in scope and explains the discrepency.

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16 Jun 2006, 07:19
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# In the past year, there has been a large drop in the number

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