Escalating worldwide demand for corn is expected to cause the market

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Conclusion : Therefore, the increase in corn prices is very unlikely to produce any comparable long-term increase in the retail price of meat.

Correct answer should consider the long-term increase, i.e., anything that will impact the price in future. Since (C) is the only one talking about the future price by stating that since producers will leave the business, future supply will decrease, it correctly weakens the conclusion.

Hi MacFauz,

Good points!

I agree with you that this question does require outside knowledge, since nowhere in the passage is it mentioned that more supply of meat would yield lower prices of meat. However, it is an official Gmat Prep question.

Since I am very limited on Economy, can I ask you if the following statements are mostly true:
- If Demand increases and Supply remains equal, then Price increases
- If Demand decreases and Supply remains equal, then Price decreases
- If Supply increases and Demand remains equal, then Price decreases
- If Supply decreases and Demand remains equal, then Price increases.

Thank you so much!

Hi there sorry I don’t understand why A is not the correct answer, when C is, since when supply of meat from livestock drop, livestock feed accounts for only a small fraction of the retail price of meat, as stated in the question, therefore the affect to long term price should be minimal.

Thanks!

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Justin123456

The author argues that the increase in corn prices will NOT lead to the increase in the retail price of meat. So if we want to weaken the argument, we have to prove that the increase in corn prices will affect the retail price of meat.

Choice A doesn't have anything to do with the increase in corn prices

Choice C talks about the rising costs of feed, which will make the livestock producers leave the business. If some livestock producers leave the business, less feed will be produced, which will lead to less production of meat. Less production of meat will lead to higher price of meat.

Here it's most important to understand that the author says livestock feed accounts for only a small fraction of the retail price of meat. He/she does NOT say that corn price accounts for a small fraction of the livestock feed price. It's important to distinguish between these two. Corn prices may play a huge part of feed prices, so if corn prices rise, feed costs will rise as well. This will make Choice C correct.

Yes C weakens clearly because as owners go out of business, it would increase supply of meat suddenly in market. Thus it would leads to fall of meat prices
In Current scenarios: Meat from livestock is limited. account for retail Price is very limited.
Later: Meat suddenly increased in market. Effect on price would be more.

Demand for corn continues to rise.
Corn extensively used to feed livestock -> constitutes small fraction of retail price of meat.

=> conclusion : Increase in corn price will not impact meat retail price proportionally.

Argument type - causal

Assumption : Increase of corn price is not going to contribute meat price in any other way.

a) shipping and handling costs irrelevant to the argument.
b) other types of livestock feed ...out of scope
c) increase of corn -->> livestock producers out of business --->> short on supply --->> increase in price.

d) demand of grain...out of scope.
e) other food price..out of scope.

Ans : c)

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