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655-705 Level|   Non-Math Related|                  
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But the consumption post 1999 has increased per-capita - and when we talk about recession it says demand decreases. how does both logically follow?
KarishmaB
Will2020
Sajjad1994
Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 224, Date : 13-May-2020
This post is a part of Project IR Butler 2019-20. Click here for Details

Discussion

The passage is based on a document published in 2005.

The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.

In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.



It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.

First graph

This graph shows the gaps between the quantities of coffee produced and the quantities of coffee consumed in the coffee producing countries. Only consumption is shown for Brazil; its 2003 production was much higher than that of Central America.

Attachment:
123.jpg

Second graph

Attachment:
223.jpg

1. For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.

Yes.......No......Statements
Coffee production and per capita coffee consumption in Brazil are significantly higher than in most of the major coffee producing countries.
The coffee consumed in the major coffee producing countries comes entirely from domestic production.
As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China.

Yes, No and Yes

2. Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?

A. 1998 to 2003
B. 1992 to 1994
C. 1987 to 1988
D. 1988 to 1989
E. 1994 to 1996


3. Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.

Yes.........No......Statements
Brazil’s 10-year program to promote domestic coffee consumption through institutional investment began in 1993.
Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.
The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.

Yes, Yes and No

Hi KarishmaB ryanstarr! I'm not getting the 2nd and 3rd statements of the 3rd question. Can you help me? Thank you! :please:


Note the question stem of question 3: Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage.

The given statement needs to be taken to be true. We need to select 'Yes' if the statement helps explain the trend we see in graph 2 (regarding production & consumption in Brazil)

Given Statement 2: Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.

Brazil is a coffee producing country. We see that 1999 onwards, its monthly income is falling (the line graph shows monthly income). Recession can explain the downward trend in the monthly income. Hence, this statement does explain the trend. "YES"

Given Statement 3: The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.
Graph 2 gives us the trend in per capita consumption of coffee in Brazil between 1986 and 2003 (the bar graph) but we are not given the trend in global production. This statement does not explain graph 2. Graph 2 does not give us global per capita rate of production.
Hence, "NO".

Will2020
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But the consumption post 1999 has increased per-capita - and when we talk about recession it says demand decreases. how does both logically follow?
KarishmaB
Will2020
Sajjad1994
Project IR Butler 2019-20 - Get one IR Question Everyday
Question # 224, Date : 13-May-2020
This post is a part of Project IR Butler 2019-20. Click here for Details

Discussion

The passage is based on a document published in 2005.

The rate of growth in global coffee consumption has been falling behind the rate of growth in global production, creating a scenario of recurring price crises that take a heavy toll on coffee producing countries. Programs to expand coffee consumption in coffee producing countries can improve the situation and make the cyclical crises less acute.

In mature markets, costs to increase consumption are probably higher than in emerging markets, such as Brazil, the largest coffee producer. The case of Brazil shows that probably the highest returns for institutional investments to develop coffee consumption are to be found in the emerging markets of coffee producing countries. A Brazilian institutional investment valued at US$25 million in 10 years brought about an increase in yearly coffee sales worth 40 times as much. Promotion of coffee consumption in coffee producing countries is likely to represent the best investment of scarce promotion resources because of this multiplier effect. There are huge gaps in per capita consumption between Brazil and many other smaller producers, some (such as Indonesia) with large populations.



It is often argued that the Brazilian promotion program worked only because there was a marked income increase within the same period. But income increases alone, without promotion, are not sufficient to increase coffee consumption. Actually, for the 20 years up to 2003 in Brazil, it was only during the period 1993 to 1998 that coffee consumption increased as income was increasing.

First graph

This graph shows the gaps between the quantities of coffee produced and the quantities of coffee consumed in the coffee producing countries. Only consumption is shown for Brazil; its 2003 production was much higher than that of Central America.

Attachment:
123.jpg

Second graph

Attachment:
223.jpg

1. For each of the following statements, select Yes if, based on the information provided in the passage or the first graph or both, the statement would have been true in 2003. Otherwise, select No.

Yes.......No......Statements
Coffee production and per capita coffee consumption in Brazil are significantly higher than in most of the major coffee producing countries.
The coffee consumed in the major coffee producing countries comes entirely from domestic production.
As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China.

Yes, No and Yes

2. Which one of the following data ranges in the second graph most clearly indicates that the final sentence of the Discussion tab involves oversimplification?

A. 1998 to 2003
B. 1992 to 1994
C. 1987 to 1988
D. 1988 to 1989
E. 1994 to 1996


3. Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage. Otherwise, select No.

Yes.........No......Statements
Brazil’s 10-year program to promote domestic coffee consumption through institutional investment began in 1993.
Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.
The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.

Yes, Yes and No

Hi KarishmaB ryanstarr! I'm not getting the 2nd and 3rd statements of the 3rd question. Can you help me? Thank you! :please:


Note the question stem of question 3: Assuming each of the following statements is true, select Yes if the statement helps explain trends shown in the second graph in a way that is consistent with information in the passage.

The given statement needs to be taken to be true. We need to select 'Yes' if the statement helps explain the trend we see in graph 2 (regarding production & consumption in Brazil)

Given Statement 2: Worldwide demand for coffee began to fall in 1999, resulting in economic recessions in most coffee producing countries.

Brazil is a coffee producing country. We see that 1999 onwards, its monthly income is falling (the line graph shows monthly income). Recession can explain the downward trend in the monthly income. Hence, this statement does explain the trend. "YES"

Given Statement 3: The trend in per capita consumption of coffee in Brazil between 1986 and 2003 is indicative of the trend in the global per capita rate of production.
Graph 2 gives us the trend in per capita consumption of coffee in Brazil between 1986 and 2003 (the bar graph) but we are not given the trend in global production. This statement does not explain graph 2. Graph 2 does not give us global per capita rate of production.
Hence, "NO".

Will2020
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