Information and IdeasHardInference from what a survey did not find
Information and Ideas practice question
A survey of the district's shops found that every one had raised its prices in the past year. The survey did not ask why. But over the same period the district's rents rose by 20% and its wages by 2%. This suggests that ____
Which choice most logically completes the text?
- A. rising rents, rather than wages, are the likelier driver of the price increases.Correct
- B. wages caused the price rises.
- C. shops raised prices to increase profits.
- D. the survey was inaccurate.
Answer: A. rising rents, rather than wages, are the likelier driver of the price increases.
Rents up 20%, wages 2%: the bigger cost pressure is rent.
Why the other answers are wrong
- B. wages caused the price rises.
- A 2% rise in wages is a weak driver next to a 20% rise in rents.
- C. shops raised prices to increase profits.
- Profit motive is not indicated; a cost increase is.
- D. the survey was inaccurate.
- Nothing suggests inaccuracy.
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