Official Solution:
Analyst Claim: The sales and pre-orders of electric cars in urban areas will significantly increase this year. The primary reason for this increase is that ongoing improvements in battery technology have substantially lowered the cost of electric cars, making them more affordable for city dwellers.
Which of the following is an assumption made in drawing the conclusion above?
A. Urban infrastructure, such as charging stations, will become more widely available in city areas this year.
B. The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars.
C. City dwellers are primarily motivated by cost savings when choosing a vehicle.
D. The cost of gasoline will remain stable throughout the year.
E. The production of electric cars will be sufficient to meet the increased consumer demand this year.
Correct Answer: C. City dwellers are primarily motivated by cost savings when choosing a vehicle. This choice validates the conclusion that the decrease in cost due to improved battery technology will lead to higher sales and pre-orders. The argument assumes that cost is a significant factor for city dwellers when purchasing vehicles because if cost savings were not the primary motivation, then the decrease in price would not lead to an increase in consumption as predicted.
A. Urban infrastructure, such as charging stations, will become more widely available in city areas this year. This choice does not relate to the claim about cost reduction leading to increased sales and pre-orders of electric cars. This is largely irrelevant as there is no connection with the original argument. Eliminate.
B. The performance of electric cars, in terms of speed and comfort, is on par with that of gasoline-powered cars. This answer choice does not have anything to do with sales and costs of electric cars. Irrelevant. Eliminate.
D. The cost of gasoline will remain stable throughout the year. There are a few problems with this answer choice:
- First, it suggests that the reason consumers would purchase more electric cars is that they are more cost-efficient than gas cars. We don’t know if the cost advantage vs. gasoline cars is a major factor in the decision.
- Second, and the biggest issue with this answer choice is that unstable gas prices (opposite) does not mean a decrease or negative. The price may rise and make electric cars even more financially advantageous or vice versa - the cost of gasoline going down and making electric cars impractical.
- Third, this answer choice is about the operating costs vs. what the argument told us that the cost of cars has declined. There are 2 elements to owning a car: upfront cost and operating cost. We do not know if the operating costs are a big driver for urban dwellers. I think it would be logical to assume that they are but it is not clear from the passage how significant they are.
- Finally, we still need the answer choice C to be true (that city dwellers are motivated by savings when choosing a car) to make D work. So C is a better choice. Eliminate D.
E. The production of electric cars will be sufficient to meet the increased consumer demand this year. This is about supply meeting demand and since the text talks about sales and pre-orders (which may extend far into the future), we can eliminate this answer choice.
Answer: C