Part A

How does the author develop the central idea that the reasons for price variance can depend on emotions as well as logic?


The author says that over time, prices for garden hoses are falling in Germany.


The author analyzes two different systems of taxation.


The author goes into factors such as consumer earnings and the price of necessities.


The author discusses the influence of perceived value.

Question 2
Part B

Which sentence from the text best supports the idea in Part A?


"As more people gain Internet access, they’re researching item prices in other countries."


"One of Germany's...policies is to collect taxes in many stages during the production of items."


"These extra costs to businesses get passed along to the consumer in the form of higher prices."


"People in Germany just think a garden hose is worth more than do people in the United States."