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The agricultural market throughout the world is struggling with

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The agricultural market throughout the world is struggling with  [#permalink]

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New post 30 Sep 2017, 12:40
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The agricultural market throughout the world is struggling with a significant reduction in the production of rice, and it is feared that demand will far outstrip supply in the coming months. However, Belvania’s export shipments of rice have increased from a total of $21.2 million last quarter to $27.6 million in this quarter. Clearly, Belvania’s production of rice has increased.

Which of the following, if true, most strengthens the argument above?

A) Some countries may be able to increase their production of rice by using innovative methods.

B) Local demand for rice in Belvania has decreased by at least 15 percent during this quarter.

C) Because of the shortage of rice, the cost of production of rice-products has also increased.

D) Increase in the demand for rice has not resulted in an increase in its selling price.

E) Belvania is the world’s largest exporter of rice.

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New post 30 Sep 2017, 23:17
+C.
Agricultural market is shrinking and production has gone down. Still, Belvania’s export shipments of rice have increased from a total of $21.2 million last quarter to $27.6 million in this quarter. Clearly, Belvania’s production of rice has increased.

As we can see that we need to strengthen the author's claim that even though the market shrank, Belvania's production has Increased.

A) Some countries may be able to increase their production of rice by using innovative methods.
Irrelevant.

B) Local demand for rice in Belvania has decreased by at least 15 percent during this quarter.
This is a weakener. If the local demand has decreased than the added export is because of this and not because of the increased production.

C) Because of the shortage of rice, the cost of production of rice-products has also increased.
Out of scope. Provides no reason to strengthen the claim that belvania's production of rice has increased.

D) Increase in the demand for rice has not resulted in an increase in its selling price.

Perfect. If the increase in demand in rice has not led to the increase in prices of rice. It eliminates the possibility that some other factor is responsible for the increase in revenues. Removes an alternate possibility.
Hence a strengthener.


E) Belvania is the world’s largest exporter of rice.
Irrelevant.
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New post 18 Mar 2018, 10:35
The first sentence that talks about the world's production and the demand is just a distractor. The main premise and the main conclusion is the second sentence. Therefore, D directly connects with "$21.2 million last quarter to $27.6 million in this quarter."
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New post 20 Mar 2018, 23:21
bkpolymers1617 wrote:
The agricultural market throughout the world is struggling with a significant reduction in the production of rice, and it is feared that demand will far outstrip supply in the coming months. However, Belvania’s export shipments of rice have increased from a total of $21.2 million last quarter to $27.6 million in this quarter. Clearly, Belvania’s production of rice has increased.

Which of the following, if true, most strengthens the argument above?

A) Some countries may be able to increase their production of rice by using innovative methods.

B) Local demand for rice in Belvania has decreased by at least 15 percent during this quarter.

C) Because of the shortage of rice, the cost of production of rice-products has also increased.

D) Increase in the demand for rice has not resulted in an increase in its selling price.

E) Belvania is the world’s largest exporter of rice.


Imo D is the answer as we have same price and the increase in revenue must have come from more production.
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Re: The agricultural market throughout the world is struggling with  [#permalink]

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New post 22 Mar 2018, 08:23
Strengtheners should would make you believe in the conclusion even more.
So giving reasons which could help in removing scenarios which break the conclusion, is a potential strengthener as well.

In this case, conclusion says A(higher production) Caused B(Increased export)
if we could say C causes B, it will break the conclusion.

So by saying C didn't cause B is a strengthener here.
Hence Ans is D
Increase in the demand for rice has not resulted in an increase in its selling price.
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New post 22 Mar 2018, 11:33
bkpolymers1617 wrote:
The agricultural market throughout the world is struggling with a significant reduction in the production of rice, and it is feared that demand will far outstrip supply in the coming months. However, Belvania’s export shipments of rice have increased from a total of $21.2 million last quarter to $27.6 million in this quarter. Clearly, Belvania’s production of rice has increased.

Which of the following, if true, most strengthens the argument above?

A) Some countries may be able to increase their production of rice by using innovative methods.

B) Local demand for rice in Belvania has decreased by at least 15 percent during this quarter.

C) Because of the shortage of rice, the cost of production of rice-products has also increased.

D) Increase in the demand for rice has not resulted in an increase in its selling price.

E) Belvania is the world’s largest exporter of rice.


My logic:
If Belvania's export shipments of rice have increased and we want to say that Belvania's production of rice has increased, we must make sure that the exports haven't increased because of less local demand in Belvania!
If during the last quarter Belvania produced the same as before, but the local demand decreased, then Belvania could export more (because it has more left overs) but that doesn't mean that the production has increased!
Option "(D) Increase in the demand for rice has not resulted in an increase in its selling price" It's telling us exactly the opposite. Belvania's local demand has increased AND from the passage we know that the exports have increased too --> Then, the production must have increased

Please correct me if i'm wrong
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New post 22 Mar 2018, 18:26
What is the conclusion of the argument : Belvania’s production of rice has increased

Structure of the argument : the value of the exports has increased, therefore the rice production must have increased.

The argument can't stand without a crucial information : is the raise in exports price due to a price increase ?
If yes = weakens the conclusion
If no = then the conclusion is strengthened.

The answer that perfectly explains that is D : Increase in the demand for rice has not resulted in an increase in its selling price.
In other words, the increase in export value is not due to a price increase. It's the information we needed !
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New post 24 Mar 2018, 09:54
I find it difficult to agree with the answer.If D has to be correct then we have to have an assumption that "increase in selling price will increase the exports". Please explain....
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Re: The agricultural market throughout the world is struggling with  [#permalink]

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New post 24 Mar 2018, 14:41
As the argument is saying revenue increased from 1st quarter to 2nd quarter from $21.2 to $27.6 million.

So the increased revenue (27.6 million) is not because of the increase in selling price of the rice but because of the increase in production.

Lets take a example.

Case I : Say selling price increased from 1st quarter to 2nd quarter.

Suppose the selling price of rice is $1 per bag in 1st quarter.
Revenue = selling price x units sold.
= $1 x 21.2 million units
= $ 21.2 million

So total of 21.2 million units were produced.

Suppose the selling price of rice increased from $1 to $1.29 per bag in 2nd quarter.

Revenue : $1.29 x 21.2 million units
: $ 27.6 million ( approx)

So still 21.2 million units were produced. So production is not increasing.





Case II : Say selling price did not increase.
Suppose the selling price of rice is $1 per bag.

So in the first quarter
Revenue = selling price x units sold.
= $1 x 21.2 million
= $21.2 million


2nd quarter
Revenue = $1 x 27.6 million
= $ 27.6 million

So 27.6- 21.2 = 6.4 million more units were produced in 2nd quarter.

Clearly, production increased

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New post 24 Mar 2018, 15:54
Answer D is the correct one here.
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New post 25 Mar 2018, 05:52
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ankur619 Increase in selling price does not mean that it has increased from 1 to 1.29...it can increase from 1 to 1.005. So by figures

Now
revenue=$27.6 million
Units produced= 27.6/1.005=27.462

Previously
Revenue= $21.2 million
Units produced=21.2/1=21.2

So even with increase in price production has increased.
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New post 25 Mar 2018, 05:54
I feel A is a better option .....
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New post 25 Mar 2018, 07:26
Yes you are right. I was just using an example to explain the answer.

Thanks

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Re: The agricultural market throughout the world is struggling with &nbs [#permalink] 25 Mar 2018, 07:26
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