Bunuel wrote:
In the year 2000, olive oils made up just 40% of the liquid oils market, with standard oils taking 52% and speciality oils accounting for the remainder. But now, fuelled by health concerns and a general move towards premium products, the tables have turned. Today, the olive oil sector is worth some $104 million and alone accounts for an estimated 51% of the total market.
Which of the following conclusions can most properly be drawn from the information above?
(A) In 2000, the total worth of the olive oil sector was less than $104 million.
(B) The total sales of the standard oils at present time are lower than their sales in 2000.
(C) Olive oil is healthier than all other liquid oils available in the market.
(D) The market share of the standard oils category today must have declined from what it was in 2000.
(E) The total worth of the specialty oil category today is higher than what it was in 2000.
Official Explanation
Since this is an Inference question, let’s look at each option and eliminate.
(A) This does not necessarily have to be the case. What if the total market for liquid oils has shrunk? Then, even though olive oil could have a larger share of this market, in absolute terms, its total worth may have gone down.
(B) Again this may not be the case if the total market for liquid oils has expanded significantly.
(C) Extreme option. There could be healthier oils than olive oil available in the market.
(D) The correct answer. In 2000, the market share of the standard oils category was 52% and currently, the market share of olive oils is 51%. So, then the market share of standard oils category currently cannot be more than 49%, which is lower than 52%.
(E) This may not be the case if the overall market for liquid oils has shrunk.