hard · GRE Verbal
In the automotive market of Country M, the introduction of a new, highly-efficient hybrid engine led to a 15% decrease in the average price of gasoline cars. Paradoxically, the market share for these hybrid cars declined by 5% over the following year.
Which of the following, if true, most helps to resolve the paradox?
- The lower price of traditional gasoline cars made them so much more affordable that many buyers who wanted hybrids chose gasoline models instead.
- The government offered a two-thousand-dollar income tax credit to any citizen who purchased a brand-new hybrid car during that year.
- The newly released hybrid engines were widely and enthusiastically praised by leading automotive critics for their reliability and smooth performance.
- Hybrid cars sold across Country M still require a steady supply of ordinary gasoline to power their backup combustion engines during longer highway trips.
- The total number of licensed car dealerships operating across Country M has stayed almost exactly the same for each of the last three consecutive years.
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