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Dairy farmers in the United States have been paying higher

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Dairy farmers in the United States have been paying higher [#permalink] New post 15 Dec 2012, 03:58
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Dairy farmers in the United States have been paying higher prices each year for essential components of production, such as feed for the cattle, fuel for farm equipment, and electricity for lights and machinery. At the same time, the amount the farmer receives for the milk, while fluctuating at times, is essentially the same as it was five years ago when the components of production were much less expensive. Many dairy farmers were just able to make a profit five years ago.

The statements above, if true, most strongly support which of the following conclusions?

A)Unless they have found other ways to cut expenses, some dairy farmers are no longer making a profit.
B)Consumption of milk, cheese, and other dairy products has dropped over the past five years.
C)The price of feed for cattle has risen because of the increased cost of fuel used to power the equipment needed to grow the feed.
D)International supplies of milk have increased, causing the price that U.S. dairy farmers are paid for their milk to stay low, despite increased costs of production.
E)The price paid by the consumer for milk, cheese, and ice cream has not changed over the past five years.

Please explain why not
[Reveal] Spoiler:
E
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[Reveal] Spoiler: OA
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Re: Dairy farmers in the United States have been paying higher [#permalink] New post 15 Dec 2012, 04:57
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vishu1414 wrote:
Dairy farmers in the United States have been paying higher prices each year for essential components of production, such as feed for the cattle, fuel for farm equipment, and electricity for lights and machinery. At the same time, the amount the farmer receives for the milk, while fluctuating at times, is essentially the same as it was five years ago when the components of production were much less expensive. Many dairy farmers were just able to make a profit five years ago.

The statements above, if true, most strongly support which of the following conclusions?

A)Unless they have found other ways to cut expenses, some dairy farmers are no longer making a profit.
B)Consumption of milk, cheese, and other dairy products has dropped over the past five years.
C)The price of feed for cattle has risen because of the increased cost of fuel used to power the equipment needed to grow the feed.
D)International supplies of milk have increased, causing the price that U.S. dairy farmers are paid for their milk to stay low, despite increased costs of production.
E)The price paid by the consumer for milk, cheese, and ice cream has not changed over the past five years.

Please explain why not
[Reveal] Spoiler:
E
?


Hi Vishu.
In the last line of the stimulus, the author punches by saying that "Even 5 years ago, the farmers were JUST able to make some profit".
Moreover, we should not forget that the price of the equipments have been increasing each year. So its quite clear that when 5 years ago, the farmers were in such condition then today, given the fact that prices of milk products have remained the same, farmers would only have two choices: either find some way to cut expenses on machinery OR work without making the profit.
A says the same.

E is not the answer because:
i) in the stimulus it has been said that the farmers have been receiving the same amount for milk for past 5 years. So it restates the fact.
ii) you can't say anything about cheese and icecream. May be the ice-cream campanies have increased their profit margin.

A is indeed the correct choice.
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Re: Dairy farmers in the United States have been paying higher [#permalink] New post 07 Jan 2013, 04:40
A)Unless they have found other ways to cut expenses, some dairy farmers are no longer making a profit.
The stimulus said that "many dairy farmers were just able to make profit 5 yrs ago" which means some are no longer making profit. This is a contender.

B)Consumption of milk, cheese, and other dairy products has dropped over the past five years.
Consumption of dairy products has not been tackled here. In fact, it says that the amount received for milk is the same. The revenue is the same

C)The price of feed for cattle has risen because of the increased cost of fuel used to power the equipment needed to grow the feed.
This is too much to assume. The stimulus mentioned each as separate reasons for the increase in cos but no relationship was mentioned.

D)International supplies of milk have increased, causing the price that U.S. dairy farmers are paid for their milk to stay low, despite increased costs of production.
international supplies of milk is out of scope.

E)The price paid by the consumer for milk, cheese, and ice cream has not changed over the past five years.
The amount received is the same but we cannot assume about the unit price.

Answer : A
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Re: Dairy farmers in the United States have been paying higher [#permalink] New post 07 Jan 2013, 19:22
Time taken:1:34s
Strategy- eliminatation method.
Most of the ans chocies are out of scope except A.

An inference must be true and not 'may be true'

Only option A withstands this test.
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Re: Dairy farmers in the United States have been paying higher [#permalink] New post 22 Feb 2013, 02:13
Dairy farmers in the United States have been paying higher prices each year for essential components of production, such as feed for the cattle, fuel for farm equipment, and electricity for lights and machinery. At the same time, the amount the farmer receives for the milk, while fluctuating at times, is essentially the same as it was five years ago when the components of production were much less expensive. Many dairy farmers were just able to make a profit five years ago.

The statements above, if true, most strongly support which of the following conclusions?

A)Unless they have found other ways to cut expenses, some dairy farmers are no longer making a profit.
As mentioned by Ron (http://vimeo.com/28996384), If (here unless) + hypothesis , part 2. The "hypothesis may not be in the scope of passage but "part 2" should be in scope. therefore. this is correct
B)Consumption of milk, cheese, and other dairy products has dropped over the past five years.OFS. Passage do not talk about this
C)The price of feed for cattle has risen because of the increased cost of fuel used to power the equipment needed to grow the feed. OFS. Passage do not talk about why or how the price increased. Scope:paying higher prices each year for feed for the cattle, fuel for farm equipment, and electricity for lights and machinery
D)International supplies of milk have increased, causing the price that U.S. dairy farmers are paid for their milk to stay low, despite increased costs of production. OFS. Passage do not talk about this
E)The price paid by the consumer for milk, cheese, and ice cream has not changed over the past five years. OFS. Passage do not talk about this
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Re: Dairy farmers in the United States have been paying higher   [#permalink] 22 Feb 2013, 02:13
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