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Decreased production

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Decreased production [#permalink] New post 22 Mar 2011, 04:06
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

52% (02:58) correct 48% (03:27) wrong based on 61 sessions
[Reveal] Spoiler: OA

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Last edited by vjsharma25 on 22 Mar 2011, 06:50, edited 1 time in total.
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Re: Decreased production [#permalink] New post 22 Mar 2011, 04:22
I think A is a dramatic weakener.
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Re: Decreased production [#permalink] New post 22 Mar 2011, 04:50
gmat1220 wrote:
I think A is a dramatic weakener.

Its not.
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Re: Decreased production [#permalink] New post 22 Mar 2011, 05:40
Govt control can forestall the fluctuations in the price. Is it B?
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Re: Decreased production [#permalink] New post 22 Mar 2011, 05:50
gmat1220 wrote:
Govt control can forestall the fluctuations in the price. Is it B?

No.
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Re: Decreased production [#permalink] New post 22 Mar 2011, 06:10
Demand and supply met. Causing the price to fall back. Is it D?
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Re: Decreased production [#permalink] New post 22 Mar 2011, 10:25
i think the answer is C
the reason explained in the text why the price of rice increased is because government growers stored all the grain to distribute to local consumption instead of selling in the world market.

C gives out another reason saying that its not because growers in the country stored it, its because government sold all the rice into another countries so the supply now decreased and this caused the price to increase.
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Re: Decreased production [#permalink] New post 22 Mar 2011, 23:13
This is not realistic. I think the author of this question made a lot of bookish assumptions.

Posted from my mobile device Image
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Re: Decreased production [#permalink] New post 22 Mar 2011, 23:26
I Believe the answer is C:
The premise of the argument is that there is little amount of rice supply for commercial purpose-for instance if 90% of worldwide rice production is controlled by growers/governments for local consumption, then analysts argue that there is not enough supply of freely traded rice.
C: States that in times of decreased rice production, government growers sale some of the rice destined for local consumption/storage at the free market-This clearly weakens the argument's conclusion.
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Re: Decreased production [#permalink] New post 23 Mar 2011, 18:26
The answer is C
The analysts blame the casue of price rise on the fact that the grains are stored for local use and little is given away for world market.

This argument can be weakened, if the grains stored for local use is given to the world market which is what option C talks about. Hence the answer!
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Re: Decreased production [#permalink] New post 25 Mar 2011, 22:39
The author of the argument implies that because so little rice is traded freely in world markets, the price of rice increases dramatically in world markets in times of production shortfall.

Answ C says that governments will sell some of the rice they store for local consumption in times of production shortfall. However, selling some rice in world markets governments not necessarily cause the price of rice to fall. Imagine, what each government decides to sell only 1% of the rice they store for local consumption. It would be very little increase in demand to satisfy the demand when the production of rice falls and supply is not enough to cover the demand. Thus even though C is correct it does not weaken the author's explanation of why the world prices on rice increase.

Answ D clearly weakens the explanation of the author. Author believes that because governments keep locally produced rice out of world market that is why the price of rice rises in times of production shortfall. What if the governments buy the rice commercially from world market. That would attack the author's explanation by attacking one of the premises.

To understand:

Author believes that:

Production Shortfall---->Gov-t keeps rice out of world market to distribute locally -----> the supply of rice in the world market falls-----> price of rice rises

If D is correct:

Production Shortfall----> supply of rice in world market falls-----> government buys rice commercially from the market--->demand for rice rises-----> price of rice rises

So, D clearly weakens the explanation of the author.
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Re: Decreased production [#permalink] New post 08 Apr 2011, 00:30
A can be a weakener if we assume that the governments anticipating a drop in demand for grain in the world markets withhold stocks of grain ,thus decreasing the grain supply to the world markets.
Can someone confirm ?
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Re: Decreased production [#permalink] New post 08 Apr 2011, 01:14
mundasingh123 wrote:
A can be a weakener if we assume that the governments anticipating a drop in demand for grain in the world markets withhold stocks of grain ,thus decreasing the grain supply to the world markets.
Can someone confirm ?

IMO A is stating after effects of the price increase. We need to weaken the why the price increased,which this options fails to do.This option states that due to price increase rice-importing countries decrease their intake. So not a weakener.
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Re: Decreased production [#permalink] New post 08 Apr 2011, 01:17
iMO C too .

BTW whats the OA ?
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Re: Decreased production [#permalink] New post 08 Apr 2011, 03:46
Argument - As governments control most of the Rice crop for local market,a deficit in production will lead to Short fall in World Market.

Requirement - Look for an option which shows that the world market will not be effected with such a short fall in production.

A Topic scribes the World Market,not just the countries which import.Hence nullified.
B It doesn't even discuss about the world market. Hence,nullified.

C Governments participate and supply Rice crop at times of short fall. Hence, the world market may not be effected by the current short fall.

Thus C is a clear winner.
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Re: Decreased production [#permalink] New post 08 Apr 2011, 03:52
vjsharma25 wrote:
mundasingh123 wrote:
A can be a weakener if we assume that the governments anticipating a drop in demand for grain in the world markets withhold stocks of grain ,thus decreasing the grain supply to the world markets.
Can someone confirm ?

IMO A is stating after effects of the price increase. We need to weaken the why the price increased,which this options fails to do.This option states that due to price increase rice-importing countries decrease their intake. So not a weakener.

Agreed that A is stating after effects of the price increase.
What if
1)the Govt Growers knew beforehand that A would hold true in case there is a price increase .
and then
2) The Govt decides to hold back stock in anticipation of reduced demand
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Re: Decreased production [#permalink] New post 08 Apr 2011, 07:00
C
Re: Decreased production   [#permalink] 08 Apr 2011, 07:00
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