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?

  1. The lower price of traditional gasoline cars made them so much more affordable that many buyers who wanted hybrids chose gasoline models instead.
  2. The government offered a two-thousand-dollar income tax credit to any citizen who purchased a brand-new hybrid car during that year.
  3. The newly released hybrid engines were widely and enthusiastically praised by leading automotive critics for their reliability and smooth performance.
  4. Hybrid cars sold across Country M still require a steady supply of ordinary gasoline to power their backup combustion engines during longer highway trips.
  5. 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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