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Q) Insect infestations in certain cotton-growing regions of [#permalink]
19 Apr 2006, 04:32
100% (01:02) correct
0% (00:00) wrong based on 3 sessions
Q) 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 planâ€™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.
B is the correct answer. If the farmers could have an effective and cheap solution against the insect then they would increase the cotton crop harvest, thereby the prices would fall down in the market. After that the soybeans producers would decide to do not switch their business.
C. But by contract, the cotton price is extremely high. As a result it will attract the soybean makers.