It is currently 13 Dec 2017, 03:27

Decision(s) Day!:

CHAT Rooms | Ross R1 | Kellogg R1 | Darden R1 | Tepper R1


Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

CEO
CEO
User avatar
Status: Nothing comes easy: neither do I want.
Joined: 12 Oct 2009
Posts: 2754

Kudos [?]: 1925 [0], given: 235

Location: Malaysia
Concentration: Technology, Entrepreneurship
Schools: ISB '15 (M)
GMAT 1: 670 Q49 V31
GMAT 2: 710 Q50 V35
Reviews Badge
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 20 Oct 2012, 06:59
ChrisLele wrote:
I received a PM on this one. I'll do my best to dispel any confusion :).

The way I see it there is a paradox going on here. Compared to high yield seasons, in which farmers store pecans to keep the price down, low yield seasons would not lead to storage. Thus, we need an answer that resolves this paradox. First off, notice the wording, "was the smallest in five years." That is not the same as a low yield year if the preceding harvests were high yield. This year simply wasn't as high.

The correct answer, answer (A), describes exactly such a scenario: record breaking yields in the previous two years. Therefore, this year can also be a high yield season and farmers are doing as they usually would, i.e., holding back part of their crop.


Why is D wrong. Even if some farmer, say 1 farmer holds backs some crop it is still a portion, howsoever small.
_________________

Fight for your dreams :For all those who fear from Verbal- lets give it a fight

Money Saved is the Money Earned :)

Jo Bole So Nihaal , Sat Shri Akaal

:thanks Support GMAT Club by putting a GMAT Club badge on your blog/Facebook :thanks

GMAT Club Premium Membership - big benefits and savings

Gmat test review :
http://gmatclub.com/forum/670-to-710-a-long-journey-without-destination-still-happy-141642.html

Kudos [?]: 1925 [0], given: 235

3 KUDOS received
Intern
Intern
avatar
Status: Done!
Joined: 22 Mar 2012
Posts: 10

Kudos [?]: 26 [3], given: 4

Location: India
GMAT 1: 700 Q49 V35
GPA: 3
WE: Operations (Manufacturing)
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 07 Dec 2012, 23:43
3
This post received
KUDOS
1
This post was
BOOKMARKED
Argument

Let us analyse 'Logic Flow' :

Premise 1: Pecan Volume increases ==> Price decreases [negative correlation]
Premise 2: High Volume of Pecan ==> Tendency to store for future selling (when price will be high) [Causal Relation]
Conclusion: This year, there was lowest addition in Volume of Pecan ==> Tendency to store still valid for this year.


Hmm... note :idea: the 'flawed Logic leap' existing between Premise 2 and Conclusion.
Logically, Volume =/= (is not equal to) Addition in Volume
But the 'flawed Logic leap' has assumed that Existing Volume of Pecans (from Premise 2) is same as Addition in Existing Volume of Pecan (as in Conclusion)


Now let us search for the options

A) Each of the last two years produced record breaking pecan yields
It says that the Volume of Pecan available is huge. So using Premise 2, the tendency to store will still persist.

B) The Quality of this year's pecan crop is no more worse than the quality of the pecan crops of the previous five years.
At the most, this information can say that OK, we have good quality crop this year. But, quality cannot decide selling pattern. (it will be far-fetched if we try to establish a relation between quality and selling) :geek:

C) pecan prices have not been subject to sharp fluctuation in recent years.
So, if prices help us decide whether to store or sell, the 'stable price' pattern just tells us- do as you have been doing recently. (Also, the option provides no info regarding Existing Volume of Pecan which is used to make 'selling/storing' decisions)

D) For some pecan growers , this year's crop was no smaller than last year's.
Those SOME people are not the representative of the whole lot of farmers. Immediately eliminate such options. :2gunfire:

E) the practice of holding back part one year's crop had not yet become widespread the last time the pecan crop was as small as it was this year.
Still no info regarding Existing Volume of Pecans. How can I decide- either to sell or store. This option is useless for me. :(

That is how, the OA is A

Cheers
Jai

Kudos [?]: 26 [3], given: 4

Intern
Intern
avatar
Joined: 09 Feb 2013
Posts: 15

Kudos [?]: [0], given: 18

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

Show Tags

New post 10 Jul 2013, 04:01
I am not convinced with A
because it is stated in the argument when the produce is abundant then the crops are held back , Ans choice A says that there were abundant production in the last wo years this implies that the pecans must have been hoarded and now this year when the produce is smallest prices will rise automatically and the produce which was held back would be sold along with this years produce...

Kudos [?]: [0], given: 18

Senior Manager
Senior Manager
User avatar
Joined: 07 Nov 2012
Posts: 333

Kudos [?]: 437 [0], given: 4

Schools: LBS '14 (A)
GMAT 1: 770 Q48 V48
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 10 Jul 2013, 07:57
Hi ruchikaarya41

Key in CR is LOGIC. So think if you were a producer what would you logically do?

Because so much is 'hoarded' in the warehouses from last years, that crop will enter the market driving the price down.

So as a producer, you may wait until next year to sell this years crop, as the price this year will still be quite low.

Clear?

James
_________________

Former GMAT Pill student, now on staff. Used GMATPILL OG 12 and nothing else: 770 (48,48) & 6.0



... and more

Kudos [?]: 437 [0], given: 4

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10168

Kudos [?]: 277 [0], given: 0

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

Show Tags

New post 24 Oct 2013, 09:44
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

Manager
Manager
User avatar
Joined: 28 Apr 2013
Posts: 150

Kudos [?]: 76 [0], given: 84

Location: India
GPA: 4
WE: Medicine and Health (Health Care)
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 22 Nov 2013, 18:49
betterscore wrote:
Which of the following most logically completes the
passage?

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

(A) each of the last two years produced recordbreaking
pecan yields

(B) the quality of this year's pecan crop is no worse
than the quality of the pecan crops of the
previous five years

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

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

(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


Is it not contradictory that the Pecan crops are smallest this year and the Option A tells that - each of the last two years produced record breaking pecan yields. How is it possible ??

Can anyone clarify…….??

Why not to choose answer C . smallest crop - stored crops will be released into market - no price fluctuations in past five years ©- since the guarantee of receiving the same price in coming years pecan growers will store the crop.


:banana
_________________

Thanks for Posting

LEARN TO ANALYSE

+1 kudos if you like

Kudos [?]: 76 [0], given: 84

Manager
Manager
avatar
Status: Persevering
Joined: 15 May 2013
Posts: 218

Kudos [?]: 101 [0], given: 34

Location: India
Concentration: Technology, Leadership
GMAT Date: 08-02-2013
GPA: 3.7
WE: Consulting (Consulting)
GMAT ToolKit User
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 23 Nov 2013, 00:33
Hi,

Consider this for the past two years the crops were in abundance so i bought a whole lot of them at price .75x (Now i have abundant supply from the past two years). This year the crops price is 1.25x, but i have old supply with me at .75x, so now i would like to sell that old supply of two years 1.25x and buy some fresh one at 1.25x. I would still make profit and rotate the inventory.

Regards,
Ramandeep
_________________

--It's one thing to get defeated, but another to accept it.

Kudos [?]: 101 [0], given: 34

Intern
Intern
avatar
Joined: 18 Jul 2013
Posts: 49

Kudos [?]: 6 [0], given: 151

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

Show Tags

New post 23 Nov 2013, 12:05
Any tips on mastering this complete the passage category CR questions.

Kudos [?]: 6 [0], given: 151

Manager
Manager
User avatar
Joined: 28 Apr 2013
Posts: 150

Kudos [?]: 76 [0], given: 84

Location: India
GPA: 4
WE: Medicine and Health (Health Care)
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 23 Nov 2013, 16:43
taleesh wrote:
Any tips on mastering this complete the passage category CR questions.


read MGMAT / Veritas prep cr guides

hope that helps
_________________

Thanks for Posting

LEARN TO ANALYSE

+1 kudos if you like

Kudos [?]: 76 [0], given: 84

Intern
Intern
avatar
Joined: 18 Jul 2013
Posts: 49

Kudos [?]: 6 [0], given: 151

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

Show Tags

New post 24 Nov 2013, 08:45
hey have done MGMAT but I havnt got any command over it.

Kudos [?]: 6 [0], given: 151

Manager
Manager
User avatar
Joined: 28 Apr 2013
Posts: 150

Kudos [?]: 76 [0], given: 84

Location: India
GPA: 4
WE: Medicine and Health (Health Care)
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 24 Nov 2013, 15:54
taleesh wrote:
hey have done MGMAT but I havnt got any command over it.

I also read it once; but need revision with cross defence from OG. Try it will help.
:banana
_________________

Thanks for Posting

LEARN TO ANALYSE

+1 kudos if you like

Kudos [?]: 76 [0], given: 84

Manager
Manager
avatar
Joined: 24 Jun 2013
Posts: 61

Kudos [?]: 11 [0], given: 49

Schools: ISB '16, NUS '15
Reviews Badge
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 26 Feb 2014, 00:30
Hi E-GMAT,

Could you please explain the correct answer?

My analysis is as follows , 1. Price falls down as the crop's yield is in abandance or vice versa.
2.growers often hold back part of their crop in refrigerated warehouses for one or two years, hoping for higher prices in the future
3. This year the crop yield is smallest.

So based on the above 3 premise my query is How come the reason for them to hold back this year crop yield is related to the last 2 year yield.As i suppose,once this year yield is smallest then growers should sells instead of holding back as i assume that this year the price will shoots up and even if the last 2 year yields were recordbreaking,they would be selling even previous stored pecans.

Could you please clarify what i'm missing?

Thanks

Kudos [?]: 11 [0], given: 49

Manager
Manager
avatar
Joined: 25 Oct 2013
Posts: 167

Kudos [?]: 77 [0], given: 56

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

Show Tags

New post 27 Feb 2014, 04:13
A it is. No other answer even comes close. A logical conclusion should explain why a portion of current year's crop will be stored. And A explains it best. If there was record breaking pecan yield last two years, then price would have been very low and those years pecans were stored. Note that the argument mentions pecans are stored for one or two years in refrigerated warehouses in hopes of higher price. If this year had smallest yield, then prices are high and pecan growers will reach for warehouses to sell older yield for profits first. This leaves a possibility of current yield to be stored.
_________________

Click on Kudos if you liked the post!

Practice makes Perfect.

Kudos [?]: 77 [0], given: 56

Expert Post
4 KUDOS received
e-GMAT Representative
User avatar
S
Joined: 02 Nov 2011
Posts: 2385

Kudos [?]: 9426 [4], given: 348

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

Show Tags

New post 03 Mar 2014, 03:49
4
This post received
KUDOS
Expert's post
Nitinaka19 wrote:
Hi E-GMAT,

Could you please explain the correct answer?

My analysis is as follows , 1. Price falls down as the crop's yield is in abandance or vice versa.
2.growers often hold back part of their crop in refrigerated warehouses for one or two years, hoping for higher prices in the future
3. This year the crop yield is smallest.

So based on the above 3 premise my query is How come the reason for them to hold back this year crop yield is related to the last 2 year yield.As i suppose,once this year yield is smallest then growers should sells instead of holding back as i assume that this year the price will shoots up and even if the last 2 year yields were recordbreaking,they would be selling even previous stored pecans.

Could you please clarify what i'm missing?

Thanks


Hi Nitinaka19,

Let me use some numbers here:

Let's suppose that the market demand is 100 units. So, if you sell more than 100 units, the price falls (as the argument says).

Suppose last year, the farmers/growers produced 150 units of pecans. Now, this means that probably, they would not have sold 50 units last year.

Since this year, the produce was very low. Let's say it is 60 units.

Now, my question is: how many units of pecans do farmers have for selling this year? Is it 60 or 110?

If it is 110 units, would farmers want to hold back some of the produce this year too, given above explanation?

Let me know your thoughts.

Thanks,
Chiranjeev
_________________












| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Kudos [?]: 9426 [4], given: 348

Manager
Manager
avatar
Joined: 24 Jun 2013
Posts: 61

Kudos [?]: 11 [0], given: 49

Schools: ISB '16, NUS '15
Reviews Badge
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 04 Mar 2014, 20:02
Hi Chiranjeev,

My answer is If the market demands remains 150unit for this year and the farmer produce 60 units this year.As in total he has 110units and assuming the price will go up. He should sell all(110unit).

My thought process is after a abundant production in last 2 years. The price was came so low that now farmer want the price to go higher. So keeping the price constraint in mind.The farmer will hold some of the production.

Please correct me if I'm wrong?

Thanks
Nitin

Kudos [?]: 11 [0], given: 49

Expert Post
e-GMAT Representative
User avatar
S
Joined: 02 Nov 2011
Posts: 2385

Kudos [?]: 9426 [0], given: 348

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

Show Tags

New post 04 Mar 2014, 20:25
Nitinaka19 wrote:
Hi Chiranjeev,

My answer is If the market demands remains 150unit for this year and the farmer produce 60 units this year.As in total he has 110units and assuming the price will go up. He should sell all(110unit).

My thought process is after a abundant production in last 2 years. The price was came so low that now farmer want the price to go higher. So keeping the price constraint in mind.The farmer will hold some of the production.

Please correct me if I'm wrong?

Thanks
Nitin


Hi Nitin,

In our example, the demand was 100 units, not 150 units.

Think about it again.

Thanks,
Chiranjeev
_________________












| '4 out of Top 5' Instructors on gmatclub | 70 point improvement guarantee | www.e-gmat.com

Kudos [?]: 9426 [0], given: 348

Manager
Manager
avatar
Joined: 24 Jun 2013
Posts: 61

Kudos [?]: 11 [0], given: 49

Schools: ISB '16, NUS '15
Reviews Badge
Re: Pecan growers get a high price for their crop when pecans are [#permalink]

Show Tags

New post 04 Mar 2014, 21:03
Hi,

LOL..!!! Seriously i need a REDBULL.!!! i got my answer .

Thanks Chiranjeev .

Kudos [?]: 11 [0], given: 49

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10168

Kudos [?]: 277 [0], given: 0

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

Show Tags

New post 20 Sep 2014, 12:07
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

Intern
Intern
avatar
Joined: 02 Jan 2015
Posts: 5

Kudos [?]: [0], given: 0

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

Show Tags

New post 02 Jan 2015, 04:55
C is not the right choice .
It talks about past scenario.
However, Future cannot be predicted.Next year pecan yield may also be very small and pecan prices may increase sharply making profit to the growers , provided the growers store pecan this year.

Kudos [?]: [0], given: 0

Non-Human User
User avatar
Joined: 01 Oct 2013
Posts: 10168

Kudos [?]: 277 [0], given: 0

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

Show Tags

New post 16 Aug 2015, 08:52
Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

Kudos [?]: 277 [0], given: 0

Re: Pecan growers get a high price for their crop when pecans are   [#permalink] 16 Aug 2015, 08:52

Go to page   Previous    1   2   3    Next  [ 43 posts ] 

Display posts from previous: Sort by

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.