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Bunuel
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Bunuel
A certain South East Asian county produces plenty of onions. The average prices of onion in local currency had not exceeded Rs 10 the previous years. This year the monsoons have been good and the production is said to be more than in previous years. Yet the country’s poor Joe (meaning common man) has to shell out close to Rs 100 per kg of onions, nearly ten times the previous prices.

Which of the following, if true, best explains the sudden change in situation described above?


A. Onion usage has gone down tremendously this year for fear of catching Flu.

B. There is another variety of onions known a small onion, which is more popular because of better taste than that of large onions

C. Onion production has been going up in recent times due better strains released by Agricultural University.

D. In a misjudgment, the government opened up export quotas for onion in order that take advantage of the high prices prevailing in importing countries.

E. The Country’s Publics Distribution System is an woefully slothful system

daagh 's old question from the archive,

A demand / Supply and pricing scenario is presented.

We know High Supply is Inversely Proportional (Demand being the same) and vice versa....

However supply has Increased and there is a constant Increase in price, the reason could be some leakage in the system (Exporting goods to foreign markets to reap huge profits), thus, the answer has to be (D).

yonseiglobalstudent
There are a few typos in the answer choices.

Edited, hope Bunuel doesn't mind. :grin: :grin:
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Can someone help me understand why A is incorrect? I would not say that this is out of scope. Thanks.
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Can someone help me understand why A is incorrect? I would not say that this is out of scope. Thanks.


See acc to me, the question is all about supply and price and not about usage even though they are related. This point seems a little out of context. I mean if I have to choose between A and D. I will choose D, as it talks about forced reduction in supply to local people due to leak in supply to exports which resulted in increase in price. So it suits the context more. Hope it helps.

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Gemelo90
Can someone help me understand why A is incorrect? I would not say that this is out of scope. Thanks.


See acc to me, the question is all about supply and price and not about usage even though they are related. This point seems a little out of context. I mean if I have to choose between A and D. I will choose D, as it talks about forced reduction in supply to local people due to leak in supply to exports which resulted in increase in price. So it suits the context more. Hope it helps.

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Adding to that .....

argument Should stand firm while strength/weaken/explain. the intended option should just affect it. As did option A, how much extent you want onion to be affected. if 80-100% what 100/kg is doing i mean when quantity is very less , people don't try to purchase it. on the other hand D is make impact. and situation is as intact as it should be. D is the best answer.
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