BostonTC2018 wrote:
I guessed answer C and I haven't seen anyone argue my logic, so here it goes:
Currently, let's say that the supply of cotton is at 100 before the soybean farmers enter the cotton market. Let's also assume that the demand = 100, so there's a 1 to 1 relationship. If there has been no sharp increase in demand, then the supply will increase when the soybean farmers enter the market. Let's say this shifts the supply to = 200. What happens when there's any increase in supply while holding demand constant? The prices go down.
If the prices go down, then the income of the farmers will be reduced.
I realize that this answer requires too many assumptions / logical bounds, but just wanted to share my thoughts incase someone else had them
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Answer is B, btw
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Thanks
BostonTC2018 for sharing your thoughts. But you missed some points of other side.
Currently, let's say that the supply of cotton is at 100 before the soybean farmers enter the cotton market. Let's also assume that the demand = 100, so there's a 1 to 1 relationship. If there has been no sharp increase in demand,
then the supply will increase when the soybean farmers enter the market. Let's say this shifts the supply to = 200( not necessary, why?).
Because you missed KEY POINT:
Insect infestations. It is because of Insect infestations, prices of cotton are high. Who knows after farmers produce supply, maybe 90% get infested? ( 90% would weaken the conclusion) but what if 1% get infested( then it strengthens) . In short, I have open end with this option.
Second Hint: What happens in history , how can you guarantee that same thing will happen in future. Example: Maybe in past several years, Insect infestations was not severe. But suddenly supply is reduced to minimal. All have open ends . So we cant weaken the conclusion.
In B , we have limited challenges. Now we have environmentally safe , inexpensive pesticide and effective against cotton.
What more else do you want?
Now you can not challenge B as much as you can challenge C.
Did you enjoy reading my analysis ?
I hope it helps:)