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Insect infestations in certain cotton-growing regions of the world hav

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Insect infestations in certain cotton-growing regions of the world hav  [#permalink]

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New post 07 Oct 2018, 09:35
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Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans, the price of which has long been stable, and to begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly at least over the next several years.

Which of the following, if true, most calls into question the reasoning on which the plan is based?

A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb.
B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infected cotton crops.
C. In the past several years there has been no sharp increase in the demand for cotton and for goods made out of cotton.
D. Many consumers consider cotton cloth a necessity rather than a luxury and would be willing to pay significantly higher prices for cotton goods than they currently pay.
E. The species of insect that has infested cotton plants has never been known to attack soybean plants.
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Re: Insect infestations in certain cotton-growing regions of the world hav  [#permalink]

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New post 07 Oct 2018, 13:33
ritu1009 wrote:
Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans, the price of which has long been stable, and to begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly at least over the next several years.

Which of the following, if true, most calls into question the reasoning on which the plan is based?

A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb.
B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infected cotton crops.
C. In the past several years there has been no sharp increase in the demand for cotton and for goods made out of cotton.
D. Many consumers consider cotton cloth a necessity rather than a luxury and would be willing to pay significantly higher prices for cotton goods than they currently pay.
E. The species of insect that has infested cotton plants has never been known to attack soybean plants.


The conclusion is that the growers plan to take advantage of the increase price in cotton to make better profit/income.

This increased price is caused by insect infestations.

There is a limited supply that is does not meet the current demand. Therefore, increasing the price.

To prethink, we need something that would return the price of cotton to normal levels. Once the price of cotton is normal(not high) the income/profit is not significant.

Answer choice B.

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Re: Insect infestations in certain cotton-growing regions of the world hav  [#permalink]

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New post 07 Oct 2018, 20:57
ritu1009 wrote:
Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans, the price of which has long been stable, and to begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly at least over the next several years.

Which of the following, if true, most calls into question the reasoning on which the plan is based?

A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb.
B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infected cotton crops.
C. In the past several years there has been no sharp increase in the demand for cotton and for goods made out of cotton.
D. Many consumers consider cotton cloth a necessity rather than a luxury and would be willing to pay significantly higher prices for cotton goods than they currently pay.
E. The species of insect that has infested cotton plants has never been known to attack soybean plants.


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Re: Insect infestations in certain cotton-growing regions of the world hav   [#permalink] 07 Oct 2018, 20:57
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