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Contrary to earlier predictions, demand for sugarcane has [#permalink]
 10 Aug 2003, 19:42
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Contrary to earlier predictions, demand for sugarcane
has not increased in recent years. Yet, even though
prices and production amounts have also been stable
during the last three years, sugarcane growers last
year increased their profits by more than ten percent
over the previous yearтАЩs level.
Any of the following statements, if true about last
year, helps to explain the rise in profits EXCEPT:
(A) Many countries that are large consumers of
sugarcane increased their production of
sugarcane-based ethanol, yet their overall
consumption of sugarcane decreased.
(B) Sugarcane growers have saved money on wages
by switching from paying laborers an hourly
wage to paying them by the amount harvested.
(C) The price of oil, the major energy source used
by sugarcane growers in harvesting their crops,
dropped by over twenty percent.
(D) Many small sugarcane growers joined together
to form an association of sugarcane producers
and began to buy supplies at low group rates.
(E) Rainfall in sugarcane-growing regions was
higher than it had been during the previous
year, allowing the growers to save money on
expensive artificial irrigation.
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Manager
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I'll go with A
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Manager
Joined: 10 Jun 2003
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Location: Maryland
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Also (A)
(A) Explains why demand dropped while B,C,D and E all describe cost-saving methods that could lead to higher profits.
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Current Student
Joined: 29 Jan 2005
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(A) doesn`t resolve the paradox and therefore is correct. It A stated that such ethanol manufacturing countries required greater importation of sugarcane, then it could have been a plausible answer choice.
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Director
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Straight A
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