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# Because of high prices on grain crops in Mordovia, fields us

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Because of high prices on grain crops in Mordovia, fields us [#permalink]

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11 Aug 2013, 00:22
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65% (01:26) correct 35% (01:40) wrong based on 552 sessions

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Because of high prices on grain crops in Mordovia, fields used for growing those crops bring farmers significantly more profits per acre of land than fields used for growing other crops. Since next year most Mordovian farmers plan to markedly increase the proportion of their arable lands used for growing grain crops, it can be properly concluded that next year total profits of Mordovian farmers will increase.

The conclusion drawn above relies on which of the following assumptions?
(A)The proportion of imported grain crops sold in Mordovia is very small.
(B)Next year, prices on crops grown in Mordovia other than grain crops will not increase.
(C)Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.
(D)Most farmers plan to increase the proportion of their fields used for growing grain crops in order to gain greater profits.
(E)Mordovian farmers who export grain crops generally earn more than farmers who grow grain crops for domestic market.
[Reveal] Spoiler: OA

Last edited by gmatquant25 on 11 Aug 2013, 01:33, edited 1 time in total.

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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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11 Aug 2013, 00:59
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gmatquant25 wrote:
Because of high prices on grain crops in Mordovia, fields used for growing those crops bring farmers significantly more profits per acre of land than fields used for growing other crops. Since next year most Mordovian farmers plan to markedly increase the proportion of their arable lands used for growing grain crops, it can be properly concluded that next year total profits of Mordovian farmers will increase.

The conclusion drawn above relies on which of the following assumptions?
(A)The proportion of imported grain crops sold in Mordovia is very small.
(B)Next year, prices on crops grown in Mordovia other than grain crops will not increase.
(C)Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.
(D)Most farmers plan to increase the proportion of their fields used for growing grain crops in order to gain greater profits.
(E)Mordovian farmers who export grain crops generally earn more than farmers who grow grain crops for domestic market.

OA to follow
.

IMO C

CONCLUSION::next year total profits of Mordovian farmers will increase.
PREMISE 1 :next year most Mordovian farmers plan to markedly increase the proportion of their arable lands used for growing grain crops.
PREMISE 2: fields used for growing those crops bring farmers significantly more profits per acre of land than fields used for growing other crops.
means :INCREASE IN ARABLE LAND ===>INCREASE IN GRAIN===>INCREASE IN PROFIT
CLEARLY this will break if INCREASE IN CROP will lead to DECREASE IN PRICE.
So in short it is assuming that increase in crop will not lead to decrease in price
or in other words
Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.

HENCE C is the assumption.

(A)The proportion of imported grain crops sold in Mordovia is very small.==>this will not affect even if proportion increases because still the per acre will provide more profit.WRONG
(B)Next year, prices on crops grown in Mordovia other than grain crops will not increase.
We are not concerned about other crops ..we need to concentrate only on our CONLUSION that next year total profits of Mordovian farmers will increase. WRONG
(C)Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.
correct
(D)Most farmers plan to increase the proportion of their fields used for growing grain crops in order to gain greater profits.
if they are growing with intention or not with intention of gaining profit this will not affect conclusion anyhow.WRONG
(E)Mordovian farmers who export grain crops generally earn more than farmers who grow grain crops for domestic market.
OUT OF SCOPE.WRONG

waiting OA
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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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11 Aug 2013, 01:10
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gmatquant25 wrote:
Because of high prices on grain crops in Mordovia, fields used for growing those crops bring farmers significantly more profits per acre of land than fields used for growing other crops. Since next year most Mordovian farmers plan to markedly increase the proportion of their arable lands used for growing grain crops, it can be properly concluded that next year total profits of Mordovian farmers will increase.

P1: hIGH \$ grain crps --> More profit per acre
P2: Inc. proportion of gr. crps in arable lands

C: Profits inc. next year

Gap premise

Inc. the proportion!= selling more != Profit

The conclusion drawn above relies on which of the following assumptions?
(A)The proportion of imported grain crops sold in Mordovia is very small. Makes conclusion less likely
(B)Next year, prices on crops grown in Mordovia other than grain crops will not increase.---> we are concerned abt gr crops
(C)Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.--> yes. if you negate that means that short supply was the reason for high prices and if the supply inc. then there wont be any high price as previously.
(D)Most farmers plan to increase the proportion of their fields used for growing grain crops in order to gain greater profits. OOS
(E)Mordovian farmers who export grain crops generally earn more than farmers who grow grain crops for domestic market. OOS

OA to follow

Hi

My answer C

Thought process

P1: hIGH \$ grain crps --> More profit per acre
P2: Inc. proportion of gr. crps in arable lands

C: Profits inc. next year

Gap premise

Inc. the proportion!= selling more != Profit

The conclusion drawn above relies on which of the following assumptions?
(A)The proportion of imported grain crops sold in Mordovia is very small. Makes conclusion less likely
(B)Next year, prices on crops grown in Mordovia other than grain crops will not increase.---> we are concerned abt gr crops
(C)Prices on grain crops are high in Mordovia for reasons other than short supply of those crops.--> yes. if you negate that means that short supply was the reason for high prices and if the supply inc. then there wont be any high price as previously.
(D)Most farmers plan to increase the proportion of their fields used for growing grain crops in order to gain greater profits. OOS
(E)Mordovian farmers who export grain crops generally earn more than farmers who grow grain crops for domestic market. OOS

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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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19 Jan 2014, 05:50
Experts,

Please help me understand why D is OOS.

Ravi

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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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19 Jan 2014, 22:57
Buddy , d is clearly stated premise not an assumption. C is the right assumption

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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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19 Jan 2014, 23:27
email2vm wrote:
Experts,

Please help me understand why D is OOS.

Ravi

Ravi,

The stem is asking the assumption on which farmers are planning to increase their grains proportion compared to other crops. With the usual logic one can say that with the increase in the supply of grains in the market, the prices tend to drop. But if you carefully read the para you will notice that majority of the farmers are hoping to gain handsome profits. It can be said that the price of grains is not based on the supply-demand market dynamics. hence, D clearly stats that and makes the argument complete.
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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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19 Aug 2015, 09:49
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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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16 Jul 2017, 16:23
many gmat questions are relating to an economic concept which is about the relationships among 3 elements: demand, supply, and price.

C reflects the relationship => more supply will not reduce price.

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Re: Because of high prices on grain crops in Mordovia, fields us [#permalink]

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25 Oct 2017, 14:09
A and D are strengthener.
B and E are out of scope.

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Re: Because of high prices on grain crops in Mordovia, fields us   [#permalink] 25 Oct 2017, 14:09
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