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
?
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.