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Contrary to earlier predictions, demand for sugarcane has not increase

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Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 23 Sep 2004, 02:39
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82% (01:22) correct 18% (01:37) wrong based on 1242 sessions

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Contrary to earlier predictions, demand for sugarcane has not increased in recent years. Yet, even though prices and production amounts have also been stable during the last three years, sugarcane growers last year increased their profits by more than ten percent over the previous year's level.

Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:


(A) Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol, yet their overall consumption of sugarcane decreased.

(B) Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested.

(C) The price of oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by over twenty percent.

(D) Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates.

(E) Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive artificial irrigation.
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 23 Sep 2004, 04:41
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A it is
B talks about sugarcane growers saving money on wages and thus increased their profitability
A talks about supply and demand. It says that sugarcane supply increased and demand decreased. This means that there is an oversupply of sugarcane and either that prices should have come down or sugarcane itself would not sell. It cannot explain why profitability increased
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 15 Jan 2008, 13:34
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Except type questions are slightly tricky. Please rephrase these questions by add following “does not/ will not” in the question.

Rephrase: Any of the following statements, if true about last year, does not help to explain the rise in profits:

(A)Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol. yet their overall consumption decreased. [Has nothing to do with the profits]

(B)Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested. [Lower wages can yield higher profits - contributor to increase rise in profits – eliminate it]

(C)The price of the oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by morethan 20%. [Drop in oil prices – can contribute to profits - eliminate it]

(D)Mnay small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates. [Wholesale purchase can increase profits - eliminate it]

(E)Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive arificial irrigation. [clear money saver - can increase profits - eliminate it]


Answer A
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 15 Jan 2008, 13:39
2
To tackle such kind of questions,replace

'Except'
by 'does not' in the question stem.

Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:

can be replaced by

Any of the following statements, if true about last year, does not help to explain the rise in profits

IMO A.
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 03 Jun 2016, 20:32
1
Argument analysis :
Contrary to earlier predictions, demand for sugarcane has not increased in recent years. A background information.

Yet, even though prices and production amounts have also been stable during the last three years, sugarcane growers last year increased their profits by more than ten percent over the previous years level. Yet: indicating contrast

Profit = Revenue – Cost
Revenue = Price*Quantity Price. Neither demand (Quantity) nor Price increased.

increase in Profit : different possiblities
a. Revenue  - Not possible as mentioned in the premise
b. Cost  - Only possibility to justify the increase in profit
c. Both happened - Not possible as mentioned in the premise
d. Other possibilities as well such as i and ii - cannot happen because Revenue has not changed
I. Revenue  and Cost  - Yet Absolute value was more
II. Revenue  and Cost  - Yet Absolute value was more

Question Stem : Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:
Except: 4 options will talk about decrease in cost and 1 will mention about increase or any other irrelevant data point.

(A) Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol, yet their overall consumption of sugarcane decreased. Irrelevant
(B) Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested. Mentions decrease in cost
(C) The price of oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by over twenty percent. Mentions decrease in cost
(D) Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates. Mentions decrease in cost
(E) Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive artificial irrigation. Mentions decrease in cost.
Option A
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 28 Mar 2017, 04:02
Sugarcane Demand has not increased. Price and Production amount have been stable. Still, More profits. :shock:

Now, we can find out the options that explains this shocking story. Left over would be our answer. :)

(A) Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol. yet their overall consumption decreased. Yeah. This is not explaining what happened. So, Correct.
(B) Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested. : Ohh.. So, they saved something and hence, got more profit. Cool.
(C) The price of the oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by morethan 20%. Same as B
(D) Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates. Same as B
(E) Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive arificial irrigation. Same as B
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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 27 Nov 2017, 23:58
Here is how I solved:

Argument: Sugarcane profits up by 10%. yet production and demand are stable.

Pre thinking

We have to find all answers EXCEPT one that does not strengthen. It doesn't necessarily have to weaken it could have no impact.

To the original argument...

If Profits are up and demand is not, then it leaves us with costs. The costs MUST have reduced to bring profits up.

According to CR Bible, in many such arguments, correct answer could be placed @ A. Because it is the first answer and the test taker is likely to let it go. So I tell myself, be extra careful of A.

That's all.

Read all choices. B,C,D & E all contain reason how costs reduced. Only A has an case where there is NO impact on answer.

Therefore correct answer A.

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Re: Contrary to earlier predictions, demand for sugarcane has not increase  [#permalink]

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New post 04 Dec 2018, 19:50
Hello from the GMAT Club VerbalBot!

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Re: Contrary to earlier predictions, demand for sugarcane has not increase &nbs [#permalink] 04 Dec 2018, 19:50
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