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Pecan growers get a high price for their crop when pecans are

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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 28 Feb 2018, 05:05
hdavies wrote:
I originally chose A because in my passage notes, I had written that a possible answer should point to "abundant crops within 2 years". What threw me off about choice A was the word "record-breaking". I felt it was too strong of a description for the answer to be right.


I often come across this point of view - "an option is too strong/extreme and hence must be incorrect". But this is not right.

What do you mean by too strong? The argument could very well warrant strong language.

Here, more the production in the last two years, better the argument. So "record-breaking" is actually re-assuring. If more is leftover from last two years, we will need to hold back more of this year's produce.
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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 17 May 2018, 06:33
hi, anyone can help explain what E says?
I think the subject of E is the practice, the verb is had not yet become widespread.
IMO, practice means the action of store pecan. so Does E say that the action of store had not been well known?
i Dont understand "the last time the pecan crop was as small as it was this year."
The first part of E states the action had not been wel known, the second states the previous yield was same as this year yield
Its strange,
it is hard for me to understand E

Please clarify

Thanks in advance
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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 17 May 2018, 10:07
zoezhuyan wrote:
hi, anyone can help explain what E says?
I think the subject of E is the practice, the verb is had not yet become widespread.
IMO, practice means the action of store pecan. so Does E say that the action of store had not been well known?
i Dont understand "the last time the pecan crop was as small as it was this year."
The first part of E states the action had not been wel known, the second states the previous yield was same as this year yield
Its strange,
it is hard for me to understand E

Please clarify

Thanks in advance
Have a nice day
>_~


Hey zoezhuyan ,

I will try to explain you E in simpler terms.

Let's say this year(2018) crop was the lowest and the last time it was lowest was in 2010. Now, E is saying in 2010, we never used to hold back any crop across as much as as we are holding the crop this year.

Does that make sense?
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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 18 Sep 2018, 11:06
I wrongly selected C as the answer and needed some clarification on how the following thought process is incorrect/less suitable:

Since ‘growers often hold back part of their crop in refrigerated warehouses for one or two years hoping for higher prices in the future’

And given C) pecan prices have not been subject to SHARP fluctuations in recent years

Can we not conclude that growers hold back some of the produce in their first year of low harvest (smallest in five years according to the question) because prices do not fluctuate rapidly and will take time to reach their highest which is when the growers would want to sell?

Thanks in advance


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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 30 Jun 2019, 11:47
GMATNinja wrote:
adkikani wrote:
Hi GMATNinja VeritasPrepKarishma GMATNinjaTwo

I am stumped by the answer choices and was not able to perform PoE correctly.

My understanding of argument:

Quote:
Pecan growers get a high price for their crop when pecans are comparatively scarce, but the price drops sharply when pecans are abundant.


A particular food grain farmers get high price when these grains are less in supply than demand. Obviously prices rises up to meet demand and vice versa.

Quote:
Thus, in high-yield years, growers often hold back part of their crop in refrigerated warehouses for one or two years, hoping for higher prices in the future.


When the food grains are cultivated in abundance, the farmers store some of them in cold storage for x duration so that they can sell them when prices are high.
Quote:
This year's pecan crop was the smallest in five years. It is nonetheless quite possible that a portion of this year's crop will be held back, since


What happened this year was: The yield was smallest in last five years, So I pause and think: Definitely storage is not possible due to lower yields.

The word - nonetheless - shows that I will be presented with a contrast. The contrast is that : farmers decide to NOT sell all of the food grains. This is surprising to me as well since if lower yields are there in current year, why would they not sell all it it? Ideally they should be getting higher price this year and not store / held back food grains.
The correct answer choice will resolve this mystery.

PoE:


Quote:
(A) each of the last two years produced record breaking pecan yields

So what? In current time, why do farmers need to store food grains in cold storage
Quote:
(B) the quality of this year's pecan crop is no worse than the quality of the pecan crops of the previous five years


Quality is irrelevant to argument

Quote:
(C) pecan prices have not been subject to sharp fluctuations in recent years

Seems close, if fluctuations itself are not guaranteed , the action of farmers to store shall be not be a reliable one

Quote:
(D) for some pecan growers, this year's crop was no smaller than last year's

This increases the mystery further
Quote:
(E) the practice of holding back part of one year's crop had not yet become widespread the last time the pecan crop was as small as it was this year

I am not sure if widespread of a particular practice is relevant. But note the later part of choice: since this year also my yield was as low as last year the mystery gets deepened instead of resolving.

adkikani, I thought your analysis of the argument was great, and I'm glad to see that you are using POE!

We know that "pecan growers get a high price for their crop when pecans are comparatively scarce." As a result, "in high-yield years, growers often hold back part of their crop in refrigerated warehouses for one or two years." That way, when pecans are comparatively scarce, they can pull those pecans out of storage and sell them at a higher price.

So when we have a low-yield year, we wouldn't expect the farmers to hold back pecans. This makes us inclined to eliminate (A).

But what if we have a low-yield year AFTER having two record-breaking years? During the two record-breaking years, the farmers would have put a lot of pecans in storage. This year, yields are low, so we can take those pecans OUT of storage and sell them. If the farmers sell all of the stored pecans AND all of the pecans from this years' crop, they might flood the market with pecans and actually drive prices down, despite this year's low yield.

So what do they do? They sell the stored pecans and hold some of this year's pecans back. That way, they avoid a market oversupply and still have some pecans in storage for next year in case yields are low again.

At first glance, (A) doesn't seem relevant. But if you think about the situation, (A) would indeed resolve the mystery.



Can you plz help me understand why my below reasoning is incorrect ?

For option C,

I think that there was no price changes plus this year production is low so it does not make sense to sell all production at steady price. Instead, farmer would prefer to store this year's low production in order to create scarcity in the market. Scarcity will lead to price increase and then sell the available stock (Available stock could be already available of last few years too. The low production of this year should be indication for producers to hold stock that leads to price increase).

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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 09 Jul 2019, 08:26
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Sk1003 wrote:
I wrongly selected C as the answer and needed some clarification on how the following thought process is incorrect/less suitable:

Since ‘growers often hold back part of their crop in refrigerated warehouses for one or two years hoping for higher prices in the future’

And given C) pecan prices have not been subject to SHARP fluctuations in recent years

Can we not conclude that growers hold back some of the produce in their first year of low harvest (smallest in five years according to the question) because prices do not fluctuate rapidly and will take time to reach their highest which is when the growers would want to sell?

Thanks in advance


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JayPatadiya wrote:
Can you plz help me understand why my below reasoning is incorrect ?

For option C,

I think that there was no price changes plus this year production is low so it does not make sense to sell all production at steady price. Instead, farmer would prefer to store this year's low production in order to create scarcity in the market. Scarcity will lead to price increase and then sell the available stock (Available stock could be already available of last few years too. The low production of this year should be indication for producers to hold stock that leads to price increase).

Jay

From the passage we know that "the price drops sharply when pecans are abundant," so pecan growers hold back part of their crop "in high yield years." This is the case in which we would expect farmers to hold back a portion of their crop.

The problem with (C) is that it does not tell us that the farmers are experiencing a "high yield year" -- it just tells us that prices have not fluctuated sharply in recent years. Perhaps pecans were already "comparatively scarce" in the preceding years, and pecans had been selling at a stable, high price. Because this year's crop is the smallest in five years, pecan farmers could sell their entire crop and still command a high price. In this case, it would not make sense to hold back a portion of their crop. For this reason, (C) does not complete the argument.

(A), on the other hand, provides excellent justification for the farmers to hold back part of their crop despite the lowest yield in five years, as described in this post.

I hope that helps!
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Re: Pecan growers get a high price for their crop when pecans are  [#permalink]

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New post 09 Jul 2019, 08:53
Easy (A), IMO

(A) each of the last two years produced record breaking pecan yields - PERFECT, this fits in aptly, but before marking this as correct, let's hold onto this.

(B) the quality of this year's pecan crop is no worse than the quality of the pecan crops of the previous five years - MEH. OUT OF SCOPE.

(C) pecan prices have not been subject to sharp fluctuations in recent years - AND WHAT ABOUT THIS YEAR?

(D) for some pecan growers, this year's crop was no smaller than last year's - OUT OF SCOPE

(E) the practice of holding back part of one year's crop had not yet become widespread the last time the pecan crop was as small as it was this year - The ONLY close choice, but on reading thoroughly, not any difficult to eliminate.

And hence, we're only left with (A) which is our correct answer choice.
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Re: Pecan growers get a high price for their crop when pecans are   [#permalink] 09 Jul 2019, 08:53

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