Question

the graph shows the average price of homes in the united states from 2009 to 2014. average price of new homes in january in the us price of new homes (thousands) 2009 2010 2011 2012 2013 2014 year 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.

Explanation:

1. Analyze Option 1: The graph shows home prices rising (from ~$240k in 2009 to ~$330k in 2014), so "inexpensive" is incorrect.
2. Analyze Option 2: As home prices rise, most people can’t afford cash, so they’ll need mortgages. This aligns with the trend (increasing prices).
3. Analyze Option 3: Rising prices make cash purchases harder, so this is illogical.
4. Analyze Option 4: Contradicts the logic of rising prices (more people need mortgages, not fewer).

Answer:

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