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The impact of the 1930s crisis on the different regions of Country X

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The impact of the 1930s crisis on the different regions of Country X  [#permalink]

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Updated on: 17 Jan 2019, 01:25
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The impact of the 1930s crisis on the different regions of Country X varied depending on the relationship of each region's economy to the international marketplace, with region A most drastically affected. Interestingly, demand in foreign markets for Region A's tropical crops was only slightly affected by the drop in income levels after 1929; the same was true of foreign demand for the temperate-zone basic foodstuffs produced by Region B. However, Region B was better able to survive the crisis, largely avoiding the economic damage suffered by Region A's economy.

Which one of the following provides the most reasonable explanation for the fact that Region A's economy was more drastically effected by the slight decrease in demand than was Region B's?

(A) Tropical crops like those produced by Region A usually command higher prices on the world market than do basic foodstuffs like those produced by Region B.

(B) Region B's economy was dependent on annual crops, the supply of which is easily adjusted because the plants are renewed each year, in contrast to the perennial crops grown in Region A.

(C) Because tropical goods are generally bought by more affluent consumers, demand for these products rarely declines even when overall income levels drop.

(D) The temperate-zone basic foodstuffs produced in Region B directly competed with similar crops produced by the countries that imported Region B's goods.

(E) Because Region B's economy was dependent on the export of basic foodstuffs, there was only a slight decline in demand for its goods even after income levels dropped.

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Originally posted by GMAT888 on 09 Jan 2015, 14:41.
Last edited by Bunuel on 17 Jan 2019, 01:25, edited 1 time in total.
Renamed the topic and edited the question.
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Re: The impact of the 1930s crisis on the different regions of Country X  [#permalink]

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14 Jan 2015, 01:19
Hi GMAT888

Region A grew tropical crops(perennial) while Region B grew temperate crops(annual)
Since after 1929 the income levels fell , the production of crops of region B could have been adjusted to the new lower demand
However the crops of Region A were perennial, so a slight decrease in demand of the crops would have compounded during the crisis period after 1929 .

Hope it Helps!!!
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The impact of the 1930s crisis on the different regions of Country X  [#permalink]

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14 Jan 2015, 01:35
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Quote:
The impact of the 1930s crisis on the different regions of Country X varied depending on the relationship of each region's economy to the international marketplace, with region A most drastically affected. Interestingly, demand in foreign markets for Region A's tropical crops was only slightly affected by the drop in income levels after 1929; the same was true of foreign demand for the temperate-zone basic foodstuffs produced by Region B. However, Region B was better able to survive the crisis, largely avoiding the economic damage suffered by Region A's economy.

Which one of the following provides the most reasonable explanation for the fact that Region A's economy was more drastically effected by the slight decrease in demand than was Region B's?

(A) Tropical crops like those produced by Region A usually command higher prices on the world market than do basic foodstuffs like those produced by Region B.

(B) Region B's economy was dependent on annual crops, the supply of which is easily adjusted because the plants are renewed each year, in contrast to the perennial crops grown in Region A.

(C) Because tropical goods are generally bought by more affluent consumers, demand for these products rarely declines even when overall income levels drop.

(D) The temperate-zone basic foodstuffs produced in Region B directly competed with similar crops produced by the countries that imported Region B's goods.

(E) Because Region B's economy was dependent on the export of basic foodstuffs, there was only a slight decline in demand for its goods even after income levels dropped.

Premise:

The impact of the 1930s crisis on the different regions of Country X varied depending on the relationship of each region's economy to the international marketplace
International Crisis affected A's Economy affected.
But demand for A`s tropical crops was only slightly affected .The same was true of foreign demand for the Region B`s Stuff. (A's,B's - Crops Demand was want not affected)
However, Region B was better able to survive the crisis, largely avoiding the economic damage suffered by Region A's economy.

I would like Classify these Kind of questions as "Why" Questions:

In these Kind of Question we Generally find the Premise explaining "Un Common Result" and asking to provide an answer why is that "Un Common Result" Happening.

In this Case For Example : Its Trying to ask why "Region B`s Economy was better able to survive the crisis whereas Region A's economy was not[Even Though both the A`s & B's Products Market Value is not reduced Drastically]"

Definitely any Option That tries to Provide some difference between A's & B`s Product or A's & B`s Economy should be a Convincing Answer.[Please keep in mind these Kind of PreThinking is necessary]

A) Tropical crops like those produced by Region A usually command higher prices on the world market than do basic foodstuffs like those produced by Region B.

This Cannot be the Answer : Lets Suppose Assume the Value is 10x,x respectively.The Market Value Reduces to 9.9x,0.9x : So what? Does this provide Why A had a serious Economy Crisis NO

B) Region B's economy was dependent on annual crops, the supply of which is easily adjusted because the plants are renewed each year, in contrast to the perennial crops grown in Region A.

This Could be the Answer : It shows a difference between how Country A,Country B Depend on the Market Place Price of their Crops. Country B has a Plan to recover in Low market value Situation whereas A doesn't.

C) Because tropical goods are generally bought by more affluent consumers, demand for these products rarely declines even when overall income levels drop.

This Cannot be the Answer : Doesn't Explain the Difference Between A & B

D) The temperate-zone basic foodstuffs produced in Region B directly competed with similar crops produced by the countries that imported Region B's goods.

This Cannot be the Answer : Doesn't Explain the Difference Between A & B

E) Because Region B's economy was dependent on the export of basic foodstuffs, there was only a slight decline in demand for its goods even after income levels dropped.

This Cannot be the Answer: Doesnt Explain the Difference Between A & B
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Re: The impact of the 1930s crisis on the different regions of Country X  [#permalink]

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25 Dec 2016, 18:34
The question contrasts between different regions which face similar situations of falling demand. Yet one region suffers more?
So if the average prices falls greater for region A, region A will suffer more. The answer choice B says that as a response to falling demand producers in region A will end up with over supply and this is a good reason for lower prices
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Re: The impact of the 1930s crisis on the different regions of Country X  [#permalink]

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10 Oct 2018, 22:01
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Re: The impact of the 1930s crisis on the different regions of Country X   [#permalink] 10 Oct 2018, 22:01
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