hard · LSAT Logical Reasoning

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 purchased on store credit rather than with cash, a financing pattern that held steady all year.
  3. Analysts widely expect the national currency to lose substantial value at some point over the coming fiscal year.
  4. New environmental rules adopted abroad have sharply raised the per-ounce cost of mining and refining new gold ore.
  5. The price of gold rose by the single largest annual margin that has been recorded in well over a decade of trading.

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