Read the Paragraph Below and Answer the Questions That Follow

Read the paragraph below and answer the questions that follow.
(1) Mexico City is a fascinating mixture of modern and traditional ways of life. (2) The city boasts sleek skyscrapers, such as the famous Latin America tower. (3) However, it also proudly displays its graceful Spanish colonial palaces and public buildings, many of which are 300 years old. (4) Glittering stores line the main shopping streets, offering the latest in international styles of clothing and house furnishings. (5) Yet old fashioned street markets fill the city, from the great food market of the Merced to stalls in small plazas selling such piñatas and paper Christmas decorations. (6) Huge modern factories in the northern section turn out most of Mexico's clothing, steel, cement, appliances, and electrical supplies. (7) In contrast, craftspeople line the city's streets with their handmade baskets, pottery, metalwork, and textiles.
Does this paragraph compare, contrast, or both?

A) compares only
B) contrasts only
C) compares and contrasts