medium · GMAT Verbal Reasoning
In the nation of Veridia, the total number of luxury cars sold increased by 20% last year. However, during that same period, the total revenue generated from luxury car sales in Veridia decreased by 10%.
Which of the following, if true, best explains the apparent discrepancy?
- Most luxury car buyers in Veridia now choose to take out long-term financing plans rather than paying the full sticker price upfront in cash.
- The total number of luxury car dealerships operating across Veridia grew by roughly 25% over the course of the past full year.
- The average price of a luxury car sold in Veridia fell by 30% as an influx of more affordable entry-level models reshaped the market.
- Several premium manufacturers rolled out unusually aggressive nationwide advertising campaigns throughout Veridia over the year.
- Veridia's national government raised the sales tax that it applies to all high-end passenger vehicles at the start of the calendar year.
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