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Because of a rare type of fungus that killed off many cacao trees

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Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 29 Sep 2014, 05:43
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Because of a rare type of fungus that killed off many cacao trees in Brazil, there was an unusually meager harvest of cacao beans this year. The wholesale price of cocoa solids and cocoa butter has increased significantly and is unlikely to fall in the foreseeable future. As a result, the retail price of chocolate is certain to increase within six months.

The answer to which of the following questions would provide information relevant to evaluating the argument above?

A Has the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest?
B Are consumers willing to spend more for chocolate?
C Have the prices of other ingredients in chocolate decreased recently?
D What percentage of cacao trees in Brazil were affected by the fungus?
E Can the fungus be eliminated within the next six months?
[Reveal] Spoiler: OA

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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 29 Sep 2014, 10:33
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A Has the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest?
This information is not relevant as the argument is relevant for the current period of poor harvest.

B Are consumers willing to spend more for chocolate?
Even if the consumers are not willing the price of the chocolate can still rise because of the rise in ingredients' cost.

C Have the prices of other ingredients in chocolate decreased recently?
Correct: the price of other ingredients of the chocolate directly impacted the final cost of the chocolate. If the price of the other ingredients is decreasing and will offset the increase in any specific ingredient then the price of the chocolate will not rise.

D What percentage of cacao trees in Brazil were affected by the fungus?
Out of scope; we already know that due to whatever percentage of cacao trees were affected, the price of cocoa solids and cocoa butter has increased.

E Can the fungus be eliminated within the next six months?
Irrelevant, doesn't have any impact on current year's produce.
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 22 Oct 2016, 22:07
JarvisR wrote:
Because of a rare type of fungus that killed off many cacao trees in Brazil, there was an unusually meager harvest of cacao beans this year. The wholesale price of cocoa solids and cocoa butter has increased significantly and is unlikely to fall in the foreseeable future. As a result, the retail price of chocolate is certain to increase within six months.

The answer to which of the following questions would provide information relevant to evaluating the argument above?

A Has the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest?
B Are consumers willing to spend more for chocolate?
C Have the prices of other ingredients in chocolate decreased recently?
D What percentage of cacao trees in Brazil were affected by the fungus?
E Can the fungus be eliminated within the next six months?

Please share ur reasoning for each of the option.


Here we need to evaluate whether the price of chocolate will definitely increase
Consider the options
A) let us take this option to two extremes. Yes the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest. Or No the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest
After taking the option to two extreme we come to know that it doesn't affect the conclusion
Hence A is not possible.
Do the same for options B,D, and E. All these three options will not affect the argument.
Now consider option C and take it to two extremes
Yes he prices of other ingredients in chocolate decreased recently. Or no he prices of other ingredients in chocolate decreased recently
Now from this we can easily conclude it affects the argument in both was. In one extreme it is saying that the price of chocolate will definitely increase and in other extreme is is saying that price of chocolate will not increase.
Hence C is correct
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 06 Feb 2017, 04:30
The correct answer is C. The conclusion of the argument is that the price of chocolate will increase within six months. The basis for that claim is that the wholesale price of cocoa has increased. However, if the price of other ingredients in the chocolate has dropped, the decrease could offset the higher price of cocoa and render the argument invalid. The only choice to address this is C.
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 08 Feb 2017, 10:49
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A Has the price of cocoa solids and cocoa butter remained steady during other periods of poor harvest?
The argument clearly explains that the proces of the cocoa solids and the cocoa butter are increased significantly ther for ther is no use of checking th past history for the cocoa prices.

B Are consumers willing to spend more for chocolate?
the willingness of the customers is irrelevant because the price of the chocolate is increased because of the low harvest and not to maximize profits,so even if The consumenrs are not willing to pay more the prices hae to be increased because the increase in the price of the raw material.

C Have the prices of other ingredients in chocolate decreased recently?
the prices of the other ingredients in the manufaturing of the chocolate is important as the raw material requred to manufature the chocolate are importnat in determining the price of the chocolate.if the proces of the raw material is low then the increased price of the cocoa can be compensated and the prices of chocalte can be moderated while of the price of the other ingredients increase or even remain the same then the price of the chocolate will increase .therfor this is the right choice.

D What percentage of cacao trees in Brazil were affected by the fungus?
The determination of percentage of affected trees is not helpful as its already stated that the prices is increased.

E Can the fungus be eliminated within the next six months?
The fungus if eleminated in the next six months does not make the hrvest to increase within the 6 months as the current harvest is already spoiled and will not recover within 6 months.
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 07 Jul 2017, 16:51
There is a similar question with the same topic about the increase in price of chocolate at both wholesaler and retailer. Nevertheless, it is a weaken question and the weakener is because the products are manufactured in the previous year.
B and E are out of scope
A is wrong because the arguments says the price of this period definitely increases.
C is better than D because we already know the price of cocoa surely increases no matter whether the cocoa forest is affected widely or not.
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 07 Jul 2017, 17:57
C is better option because it has a direct relation with price of chocolate.

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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 08 Jul 2017, 03:18
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Imo C
The important point with evaluate the argument question is that they may contain some options with the some information that is repeated .
We have to always look for choices that give new information regarding the argument in order to evaluate it correctly .

Here also A and D repeat the information form the passage .
Option E does not have any impact whatsoever on the argument .
Even if the fungus is controlled in 6 months , we can not be certain that it will lead to increase in production in cocoa in the current period .
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Re: Because of a rare type of fungus that killed off many cacao trees [#permalink]

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New post 28 Dec 2017, 23:40
Skywalker18 wrote:
The correct answer is C. The conclusion of the argument is that the price of chocolate will increase within six months. The basis for that claim is that the wholesale price of cocoa has increased. However, if the price of other ingredients in the chocolate has dropped, the decrease could offset the higher price of cocoa and render the argument invalid. The only choice to address this is C.


Hi Skywalker18,

I am confused between B and C. B to me looks legit as if the customers are not willing to spend more, so the demand is reduced or better to say the demand is effected and so with the increase in price of chocolates, the retailers wont be able to make sales. So, the retailers will be forced to retain the original price. On the other hand, if the consumers are fine with the increase in prices, then the price of chocolate will increase.
Re: Because of a rare type of fungus that killed off many cacao trees   [#permalink] 28 Dec 2017, 23:40
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Because of a rare type of fungus that killed off many cacao trees

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