This is a classic GMAT type question which poses 2 parallel occurrences next to each other. It is trying to find the underlying assumption about the change in A causing change in B. So, one of the choices has to indicate that drop in price of methamphetamine and the trafficking part are related to each other.
A The supply of methamphetamine dropped substantially in 2012.
This option might help to explain where the extra supply of methamphetamine came from. But it does not talk about pricing.
B The price paid for most methamphetamine by the average consumer did not drop substantially in 2012.
This option is irrelevant because we are dealing with wholesale prices and not consumer prices. Anyhow, it says that average price remained the same. This could be answer to a "WEAKEN" question.
C Domestic production of methamphetamine increased at a higher rate than did the entry of the drug into the country.
It is comparing rate of increase of domestic production to the rate of entry of drug. But, we donot know about pricing. If production increased by 0.1 % and the inflow increased by 0.001% then pricing may or may not be affected at all.
D The wholesale price of methamphetamine increased substantially in 2012.
This is a "WEAKENER" but does not correlate trafficking + wholesale price. It is actually stating the opposite of what the premise is.
E A drop in demand for methamphetamine in 2012 was not the sole cause of the drop in its wholesale price.
A drop in demand could be a possibility here. Demand v/s Price tells that price can get affected -vely if the demand goes down. The option indirectly suggests that some thing other than the drop in demand was responsible for causing the price to drop. This throws open the possibility of a multitude of reasons. One of them could be drug trafficking.
It is an oblique reference to a possibility. So, its not a clear cut answer, but still IMO E.