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gloomybison
Joined: 30 Mar 2021
Last visit: 02 Jan 2024
Posts: 223
Given Kudos: 93
Location: Turkey
Schools: Yale '26 (A) LBS '26 (WL) Booth '26 (A) Columbia CBS'26 (A) Kellogg '26 (A) Tuck '26 (A) Wharton '26 (D) Sloan '26 (D)
GMAT 1: 720 Q51 V36
GPA: 3.69
Schools: Yale '26 (A) LBS '26 (WL) Booth '26 (A) Columbia CBS'26 (A) Kellogg '26 (A) Tuck '26 (A) Wharton '26 (D) Sloan '26 (D)
GMAT 1: 720 Q51 V36
Posts: 223
20 May 2022, 13:07
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Hi GMATNinja
I have a couple of things that ı couldn't fully comprehend
#1
How do we know that world market prices are higher than current domestic prices? I know that passage says if tariffs are removed farmers will profit more, however making more profits doesn't necessarily mean an increase in profitability. What ı mean is even if the prices at the world market do not differ from the domestic prices, farmers can still gain more profit because they may find a far larger customer base out there to sell their goods and this may in turn increase their total profit.
#2
Also is it safe to assume that farmers migrating from farmlands to suburbs will necessarily increase unemployment? we don't really have any data regarding to that
Thank you for your answers:)
I have a couple of things that ı couldn't fully comprehend
#1
Quote:
How do we know that world market prices are higher than current domestic prices? I know that passage says if tariffs are removed farmers will profit more, however making more profits doesn't necessarily mean an increase in profitability. What ı mean is even if the prices at the world market do not differ from the domestic prices, farmers can still gain more profit because they may find a far larger customer base out there to sell their goods and this may in turn increase their total profit.
#2
Quote:
Also is it safe to assume that farmers migrating from farmlands to suburbs will necessarily increase unemployment? we don't really have any data regarding to that
Thank you for your answers:)
24 May 2022, 05:45
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gloomybison
That's a good question about world market prices vs. domestic prices.
The passage tells us that a tariff is imposed on cashews to "ensure" the nuts are sold domestically. We also know that if the tariff were lifted and "cashews were sold at world market prices, more farmers could profit by growing cashews." So why could more "more farmers" profit by selling cashews at world market prices than selling them domestically? The simplest explanation is that world market prices are higher than domestic prices.
Could we imagine an alternative explanation, where world market prices are the same as domestic prices, but the effect is the same? Well, we'd need to assume the current demand for unprocessed cashews in Kernland could not absorb increased production of cashews. In other words, we'd need to assume that the factor holding back domestic cashew profitability is the size of the domestic market, not the domestic price.
Since this may or may not be the case, it's not the best explanation. However, we know for sure that an increase in the selling price of cashews will increase profitability. So the idea that world market prices are higher than domestic prices is a better explanation.
Regarding your second question: it is safe to assume that if small farmers are driven off their land into cities, this could increase unemployment. We have no idea how long it will take these farmers to get jobs in the city. Maybe it will happen quickly, or maybe it will take a long time. But we do know for sure they lost their jobs as farmers and need new ones.
So either way, an influx of small farmers into cities creates a risk of unemployment. And if (E) reduces this risk, it weakens the argument.
I hope that helps!
27 Nov 2025, 23:23
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GMATNinja KarishmaB
So in essence, can we say that we are looking for an answer choice which suggests either of the two:
1 - The tariffs will NOT increase unemployment
2 - The unemployment will increase due to another factor i.e due to the migration of farmers to urban areas
Also for weaken questions and the one like here, is it safe to say that we should look out for an answer choice which provides an alternate explanation for the stated cause OR show that even when the cause occurs, the effect does not occur?
So in essence, can we say that we are looking for an answer choice which suggests either of the two:
1 - The tariffs will NOT increase unemployment
2 - The unemployment will increase due to another factor i.e due to the migration of farmers to urban areas
Also for weaken questions and the one like here, is it safe to say that we should look out for an answer choice which provides an alternate explanation for the stated cause OR show that even when the cause occurs, the effect does not occur?
reply2spg
