Question

The graph shows the average price of homes in the United States from 2009 to 2014.

Based on the information in the graph, what is the most reasonable prediction?
The cost of a new home in the United States will continue to be inexpensive.
Rising home prices in recent years means that more people will need to take out mortgages.
More people will be able to pay cash for new homes and not need to take out a mortgage.
Based on recent trends, fewer people will need mortgages in the future.

Answer 1

B. Rising home prices in recent years means that more people will need to take out mortgages.

Answer 2

Rising home prices in recent years means that more people will need to take out mortgages.

Step-by-step explanation:

We can see in the graph that there is an upward trend; that is, the average price of homes in the US is rising. While there was a slight decrease from 2010 to 2012, overall the average is still increasing.

Since the prices are increasing, more people will need to take out mortgages, as it will e harder to have the cash saved up to purchase the home.