In the past year, there has been a large drop in the number of new cars sold, due to harsh economic conditions 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 Low demand for trucks and vans has led to lower production in the factories

B The market for expensive cars has been unaffected by the current economic conditions

C There will be tax reduction later in the year which is expected to aid moderate and low income families.

D Economic conditions are expected to get significantly worse before the end of the year.

Solution

Correct Answer: Option B

Solution

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