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Manager
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Insect infestations in certain cotton-growing regions of the [#permalink]
 24 Apr 2006, 07:40
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Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. By contrast, the price of soybeans has long remained stable. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans and begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly, at least over the next several years.
Which of the following, if true, most seriously weakens the plan’s chances for success?
A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb.
B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infested cotton crops.
C. In the past several years, there has been no sharp increase in the demand for cotton and for goods made out of cotton.
D. Few consumers would be willing to pay significantly higher prices for cotton goods than they are now paying.
E. The species of insect that has infested cotton plants has never been known to attack soybean plants.
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Director
Joined: 24 Oct 2005
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Going with B.
Insect infestation caused the price to go up. But insects are destroyed, the prices may well come down.
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Manager
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same here...B
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VP
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I wud go with C...
The statement shows that the high cost was due to the low supply. If u increase the supply and the demand is not there, there price will drop.
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Senior Manager
Joined: 22 Nov 2005
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"B" weakens the argument most seriously,as the price of the cotton increased because the insects spoiled the crop,but now better pesticide is available and the crops will be protected.
Therefore no price rise.
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VP
Joined: 07 Nov 2005
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B all the way
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VP
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B weakens the argument.
_________________
Don't be afraid to take a flying leap of faith.. If you risk nothing, than you gain nothing...
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GMAT Club Legend
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A. Out of scope
B. not so good as having inexpensive pesticide does not mean the farmers will use it on their crops.
D. It only says there are not willing to pay, but if the price is raised, there will still pay, just that they would not be all that much happy.
E. Out of scope
C is probably the best choice. If there is no sharp increase in demand, and more farmers are now producing cotton, then the farmers are not going to benefit from the increase in price.
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Manager
Joined: 31 Mar 2006
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I chose C but the OA is B...
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Intern
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I go with B. B is the only answer choice which relates the thinking of the farmers. Their assumption is the cost of cotton will be higher as insects will continue to consume the crop. If a pesticide is found to terminate the insects, the cost of cotton may not be as high and moving from soybean cultivation to cotton cultivation will not be prolific.
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