Cause and Effect - Discussion Page For Q.2717 | Logical Reasoning Questions and Answers | Logical Reasoning Free Online-Tests | LucentBlackBoard

Statement: Most car manufacturers have marginally reduced the price of their products despite higher input costs and increased Government, duties and have promised to keep the prices at the present level for atleast the next couple of months.

Which of the following can be a best possible reason for the above step by car manufacturers?

A.	Car manufacturers have not been able to meet their sales target for the current year so far.	B.	The Government is planning to review taxes on the raw materials for manufacturing cars.
C.	The car sales market is going through a jubilant phase as the volume of sales has picked up considerably in the recent past and profit per car has also gone up.	D.	Car buyers are still hesitant to make their purchases and may postpone for another few months.
E.	Oil marketing companies are contemplating reviewing the petrol and diesel prices in order to decide future market prices.

Answer and Explanation

Answer:The car sales market is going through a jubilant phase as the volume of sales has picked up considerably in the recent past and profit per car has also gone up.

Explanation:
The best possible reason behind the car manufactures companies have marginally reduced the price of their products because 'The car sales market is going through a jubilant phase as the volume of sales has picked up considerably in the recent past and profit per car has also gone up".

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