Farmers get water at subsidized rates that are much lower than the inc

D is the answer. Farmers must consider whether they can plant the crops again in future years if they stop irrigating their land this year. Perhaps the land is permanently damaged if not irrigated this year. If the price of water goes up in the future (subsidies removed) then the farmers would have no income. Thus this is the key consideration that farmers have to think about.

My choices were either B or D. I didn't choose B in the end because it's a net 0 trade; a farmer could make the same amount of money in crops (value of crops would go up with no one farms anymore) or water (arbitrage to open market price).

Choice D means that the farmers if let their crops die i.,e it is based on some initially determined factors which if fails can be set right which is, the crops can easily be replanted the next year.

The above doesn't seem a very good choice because the factors should help to select one choice over the other. You do not say that if one choice fails, the other choice will work.

It would have been more appropriate had a choice been: the current differential between the subsidized rate and the rate in the open market will continue in the future.

Farmers get water at subsidized rates that are much lower than the increasingly high prices fetched on the open market.
Some farmers are debating whether to continue irrigating their crops and sell their produce or to let the crops die and sell their irrigation water to needy cities and other farms.

Farmers are thinking whether to do this or that?
So this current strategy is about taking a decision about future path.

evaluate the farmers' current debate?

A. Whether farmers will get water at subsidized rates in the future.
(If no i.e, they get the water at high rates then they will not be able to continue with neither irrigation nor water sale as no one will buy water at high rates and also irrigation will cost them a lot.
If yes they cant still decide which plan to go for. This cannot help them choose one of the plans.

B. Whether produce prices will increase if some farmers let their crops die.
(If this happens then the farmers who did not let their crops die will benefit from this. If no nothing will change for either of them.)

C. whether irrigation water needs to be filtered and purified before drinking.
(The water sale is from one farmer to other farms and need cities and the purpose of usage need not be for drinking or even if the water is for drinking, purification may be acceptable to people who use it. This is OFS.)

D. Whether their crops, if allowed to die, can easily be replanted the following year.
(If yes, they can choose either of them(they can try selling water) as they can switch back to their irrigation if water is not available at subsidized prices.
If no, then they have to continue selling water forever as they cant revert back to their old practice.)

E. Whether the price of water will continue to increase at its current rate.
(This cant help us decide. If yes and farmers continue to get water at subsidized prices, then selling water can be beneficial for them. If no then probably that represents the current scenario.)

I chose A but now I'm feel it is D.

Lets evaluate all the answer choices one by one, thinking like a farmer :D

A) Let say we will not get the water at subsidized rates in the future - So why not make money now as in the future we need to pay more / Yes we will get the water at the reduced rates - So still why not make money now.
B) Yes the produce prices will increase if some of us let out crops die - That supports the notion that we should let our crops die and in the future with next harvest sell it at a much higher price. / No the prices will not go up - Ohh!!! Then let's sell our water.
c) Yes - So let us sell the water to the needy - They will take care of that or lets purify it as it costs just 1$ per 1000 ltrs and sell it at a much higher price / No - So lets sell the water as received.
D) yes - So let them die and sell out water / No - OMG!!!! what we will do next year?? We will not even get water as we will no longer be farmers. So we should not sell - CORRECT.
E) Yes - Hurray!!! Lets sell it / No - Doesn't matter .. let's sell it at same price. - Lets sell it.


I hope this helps.

KUDOS Please. :D

Most people over here are assuming that the farmers want to sell to make more profits than selling crops. They indeed want to sell the water , might be at the subsidized rate cause if they did sell it for a higher rate, then the people from the town would not buy it from them but actually get it from the supplier who is already selling it to them at a higher rate. So since the farmers are selling water presumably at a more affordable rate, they are doing it to help the people. In turn they need to make sure that their sacrifice will not have a long lasting effect meaning that they should be able to farm the next year. The Answer is D.

The answer cannot be A, cause they are debating about the water they currently have. There is no indication that they are storing water now in case of a price fluctuation in the future . So there is no reason for them to evaluate about the future subsidy.

can somebody please explain why D is the correct answer by using YES/NO logic. As i know using yes will break the conclusion and NO will hold the conclusion. kindly explain with details.
thanks in advance

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