Free Practice Question
CR · Critical Reasoning
605-655
Assumptions
During an economic depression, it is common for food prices to increase even as incomes decrease. Surprisingly, however, researchers determined that during a depression, for every 5 percent increase in the cost of bread, the lowest socioeconomic class actually increases the amount of bread purchased per capita by 3 percent.
Which of the following hypotheses best accounts for the researchers’ findings?
Which of the following hypotheses best accounts for the researchers’ findings?
Answer Choices
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Not all food costs increase during a depression; some food items actually become less expensive.
B
Because bread consumption does not increase by the same percentage as the cost does, people are likely consuming more of other food items to compensate.
C
When incomes decrease, people are typically forced to spend a larger proportion of their income on basic needs, such as food and housing.
D
People who suddenly cannot afford more expensive foods, such as meat, must compensate by consuming more inexpensive foods, such as grains.\n
E
During a depression, people in the lowest socioeconomic class will continue to spend the same amount of money on food as they did before the depression began.
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Explanation
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Difficulty
605-655
Type
CR