Escalating worldwide demand for corn is expected to cause th : GMAT Critical Reasoning (CR)
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# Escalating worldwide demand for corn is expected to cause th

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Escalating worldwide demand for corn is expected to cause th [#permalink]

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27 Oct 2012, 04:37
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Escalating worldwide demand for corn is expected to cause the market price of corn to rise sharply and remain high. Although corn is extensively used as feed for livestock, livestock feed accounts for only a small fraction of the retail price of meat. Therefore, the increase in corn prices is very unlikely to produce any comparable long-term increase in the retail price of meat.

Which of the following, if true, most seriously weakens the argument?

A) The cost of shipping and handling meat has also risen sharply.
B) Livestock producers who currently use corn to feed their livestock have the option of switching to other kinds of feed.
C) The rising cost of feed is leading some livestock producers to leave the business, thereby reducing the future supply of meat.
D) Worldwide demand for grains other than corn has also increased.
E) The price of corn affects the retail price of a variety of other food products more than it affects the price of meat.

kindly Explain!

regards,
ravi.
[Reveal] Spoiler: OA

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Last edited by Narenn on 30 Oct 2013, 13:30, edited 2 times in total.
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27 Oct 2012, 13:13
By POE, I got C

A. Cost of shipping and handling - out of scope
B. Strengthen
C. Don't know how this weakens
D. Irrelevant - don't know if other grains are used to feed
E. other products - out of scope

Can someone explain how C weakens?
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27 Oct 2012, 23:03
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Doesn't the answer strengthening the argument than wreaking it?

kindly Explain!

regards,
ravi.

It has to do with supply and demand. Low supply and high demand leads to higher prices. Hence C correctly weakens the argument.

However as answering this question requires some outside knowledge (even though it may be very limited), I have my doubts whether it is a typical GMAT question.

Kudos Please... If my post helped.
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Re: Escalating worldwide demand for corn is expected to cause th [#permalink]

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31 Oct 2013, 01:58
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Re: Escalating worldwide demand for corn is expected to cause th [#permalink]

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10 Sep 2014, 08:24
Conclusion : Therefore, the increase in corn prices is very unlikely to produce any comparable long-term increase in the retail price of meat.

Correct answer should consider the long-term increase, i.e., anything that will impact the price in future. Since (C) is the only one talking about the future price by stating that since producers will leave the business, future supply will decrease, it correctly weakens the conclusion.
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13 Dec 2015, 16:18
Hello from the GMAT Club VerbalBot!

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Re: Escalating worldwide demand for corn is expected to cause th [#permalink]

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13 Dec 2015, 16:39
MacFauz wrote:
Doesn't the answer strengthening the argument than wreaking it?

kindly Explain!

regards,
ravi.

It has to do with supply and demand. Low supply and high demand leads to higher prices. Hence C correctly weakens the argument.

However as answering this question requires some outside knowledge (even though it may be very limited), I have my doubts whether it is a typical GMAT question.

Kudos Please... If my post helped.

Hi MacFauz,

Good points!

I agree with you that this question does require outside knowledge, since nowhere in the passage is it mentioned that more supply of meat would yield lower prices of meat. However, it is an official Gmat Prep question.

Since I am very limited on Economy, can I ask you if the following statements are mostly true:
- If Demand increases and Supply remains equal, then Price increases
- If Demand decreases and Supply remains equal, then Price decreases
- If Supply increases and Demand remains equal, then Price decreases
- If Supply decreases and Demand remains equal, then Price increases.

Thank you so much!
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Re: Escalating worldwide demand for corn is expected to cause th   [#permalink] 13 Dec 2015, 16:39
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