Question

If the price of buying a foreign car in the U.S. rises as the passage suggests, which of these might balance the trade deficit?

A) The price of foreign cars becomes more attractive to buyers.
B) The price of domestic cars becomes more attractive to buyers.
C) The high value of the yen encourages U.S. investment in Japan.
Eliminate
D) Severe unemployment in the domestic car industry forces layoffs.

Answer 1

b. is what i would say ....

Answer 2

I believe the answer is: B)The price of domestic cars becomes more attractive to buyers.

As the price of a certain product increase, there would be less people who have enough disposable income to buy them.

When this happen, those people would start to look for alternative in cheaper product, in this case that cheaper product would be the domestic cars.