1 . In the past year, there has been a large drop in the member of new cars sold due to harsh economic conditions in the market place 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 car has climbed steadily over the past ten years
• B. There will be 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 significant worse before the end of the year

Answer: Option D

Explanation: