QUESTION TEXT: Over the last 25 years, the average…
QUESTION TYPE: Weaken
CONCLUSION: Individuals pay more for new cars, relative to their incomes.
REASONING: The average price paid (by anyone) for a new car has gone up relative to individual incomes.
ANALYSIS: This is a very subtle question. Individuals aren’t the only ones who buy cars.
Businesses and governments buy many cars, for example. Maybe they have been buying cars at higher prices, while individuals are paying similar prices.
___________
- This doesn’t help. The stimulus said car prices have gone up relative to individual income, not household income. And individuals pay more relative to their income, not household income.
- The number of cars sold doesn’t matter. We care about the price paid for those cars, and who buys them.
- This doesn’t matter. The price paid increased relative to individual income. This could mean, for example, that the price stayed the same, while incomes declined. That’s a relative increase.
- Same as B. It doesn’t matter how many cars have been sold. We only care about the price of new cars, and who buys them.
- CORRECT. If governments or businesses are buying many expensive cars, then this could mean that individuals aren’t paying a higher price relative to their income.
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