Escalating worldwide demand for corn has led to a sharp increase in the market price of corn, and corn prices are likely to remain high. Corn is extensive used as feed for livestock, and because profit margins are tight in the livestock business, many farmers are expected to leave the business. With fewer suppliers, meat prices will surely rise. Nonetheless, observers expect an immediate short-term decrease in meat prices. Which of the following, if true, most helps to justify the observers’ expectation? (A) The increase in corn prices is due more to a decline in the supply of corn than to a growth in demand for it. (B) Generally, farmers who are squeezed out of the livestock business send their livestock to market much earlier than they otherwise would. (C) Some people who ate meat regularly in the past are converting to diets that include little or no meat. (D) As meat prices rise, the number of livestock producers is likely to rise again. (E) Livestock producers who stay in the business will start using feed other than corn more extensively than they did in the past.

Last visit was: 27 Apr 2026, 05:42

It is currently 27 Apr 2026, 05:42

Toolkit

Critical Reasoning (CR)

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Go to My Error Log Learn more

Request Expert Reply

Confirm Cancel

Apr 27
Try OnDemand GMAT Masterclass
11:00 AM EDT
-
12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 28
Join - GMAT Day!
08:00 AM PDT
-
11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.

Back to Forum

Create Topic

Escalating worldwide demand for corn has led to a sharp

1 2

sriramsundaram91

Joined: 12 Mar 2018

Last visit: 24 Apr 2026

Posts: 79

Own Kudos:

Given Kudos: 116

GMAT 1: 630 Q49 V27 Verified score

GPA: 4

Products:

GMAT 1: 630 Q49 V27 Verified score

Posts: 79

Kudos: 89

30 Mar 2026, 11:53

Kudos

Bookmarks

So corn price has increased, but corn is the raw material to grow livestock from which meat is obtained.
Livestock business runs already on tight profit margin.

Increase in raw material price i.e. corn would render the livestock business non-profitable.

This would mean people will close this business. Question you need to ask yourself is when a business is closing what do you see in their stores?
They will give away items for much cheaper price because they are shutting down anyways.
So if livestock is sent earlier that would make supply high and demand has not met the supply which means lower price.

So the livestock business men will send them much earlier that they would.

1 2

Moderators:

GMATNinja

GMAT Club Verbal Expert

7390 posts

AbhishekP220108

507 posts

bhanu29

361 posts