hard · LSAT

Economist: In the last fiscal year, the price of gold increased while the value of the national currency remained stable. Curiously, during this same period, the total volume of gold jewelry sales reached an all-time high. This is unexpected, as one would typically expect sales volume to drop when prices rise.

Which of the following, if true, most helps to resolve the apparent discrepancy?

  1. A new custom made gold jewelry an obligatory gift within a demographic that experienced record growth that year.
  2. Most gold jewelry is bought on credit rather than with cash.
  3. Analysts expect the national currency to lose substantial value over the coming year.
  4. New environmental rules have sharply raised the cost of mining gold.
  5. The price of gold rose by the largest margin recorded in over a decade.

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