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# The rate of growth in global coffee consumption has been falling behin

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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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1)A)Yes,since coffee production per capita is 4.5 which is highest among all countries and it is also mentioned in the First graph that Brazil's coffee production was higher than that of Central America,which is already on the right most end of x-axis of the graph
B)No,this cannot be said since the consumption might be from domestic or imports from other countries.
C)Yes,since India produces more coffee than China and also the bubble size is greater for India than for China so the mentioned statement is correct

2)D, Since from 1988 to 1989 the monthly income Increased and also the per consumption Increased,so the last statement mentioned in the discussion that only increase without promotion is not sufficient is wrong and it needs simplification.

3)a)Yes,since there is a statement made in the discussion that "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",so here the 10 years period starts from 1993 since the data is talking about the 2003 values
b)Yes,since Brazil's monthly income started falling from 1999 and the per capita consumption Increased but the overall consumption in 2003 was Highest in Brazil and it was lower in other countries so most of the countries might have felt the recession
c)No,since condition of other countries is not known so we cannot comment on the global per capita rate of production

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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
Can you explain the answer for 2 again-
in Graph 2 I see a fall in income from 1998 to 1999 - and an increase in consumption: What am I missing
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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akshaygup wrote:
Can you explain the answer for 2 again-
in Graph 2 I see a fall in income from 1998 to 1999 - and an increase in consumption: What am I missing

There are two cues for you,
First, the question is not provided option that you are alluded.
Second, pursuant to the last assertion,
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.

There is a period when the trends of both curves coincide.
Thus, to rebut the argument, you ought to find a period out of mentioned diapason.
Whereas your option is crossed one of the borders - 1998.

Hope it helps.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
The second graph shows that Brazil's per-capita monthly income fell significantly from 2000 to 2003. Since the passage indicates that Brazil was a major coffee-producing country, an economic recession resulting from a decline in worldwide demand for coffee beginning in 1999 could help explain this trend.

I chose No as the coffee consumption in brazil was increasing from 1999 to 2003 and there is no data to verify coffee consumption trend for rest of the world. Guess I am missing interpret something, please help me understand.

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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
[/quote]

I chose No as the coffee consumption in brazil was increasing from 1999 to 2003 and there is no data to verify coffee consumption trend for rest of the world. Guess I am missing interpret something, please help me understand.

Posted from my mobile device[/quote]

For this question, we have to assume that the information provided is true (as stated in the question itself). From the second graph, we see that income for Brazil dropped steadily from 1999 to 2003. Brazil is a major coffee-producing nation. If the global consumption of coffee goes down over the same period, we can anticipate that the coffee-producing nation will also see a similar drop in their income. Hence, this sentence provides some explanation of the drop in income observed in the second graph.

It is true that Brazil's coffee consumption did go up over the same period. However, that may not be enough to offset loss of income from the drop in global consumption.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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Q1 for the last option "As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China."

I do not agree with the OA that the answer is YES.

I understand the explanation that, as per first graph, India has an existing large coffee production so it seems to have a larger potential (while China has neither). There is no definition of "potential" in the discussion, and the discussion also clearly suggests the potential depends on the state of the market (mature of developed). There is no description of the state of the Indian or Chinese Market.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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

D

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!
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
KarishmaB wrote:
Will2020 wrote:
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

D

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!

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

Hi KarishmaB! Regarding Statement 2, I understand that Brazil could have faced an "economic recession", but how can I infer that OTHER countries were facing economic recession as well?

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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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Will2020 wrote:

Hi KarishmaB! Regarding Statement 2, I understand that Brazil could have faced an "economic recession", but how can I infer that OTHER countries were facing economic recession as well?

The statement is given to be true. Read the question stem again: Assuming each of the following statements is true, select Yes if the statement helps explain trends in the graph...

We don't have to explain the statement. It is what we know. Knowing this, we have to see if it explains the trend in the graph. If we know that recession had hit coffee producing countries, and we know that Brazil is a coffee producing country, then we can say that recession might have hit Brazil. Then the graph can be explained because the graph shows decreasing income.
We are given the generic statement and are asked to explain the graph of Brazil based on that.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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.

Can somebody please clarify here what exactly this statement implies?
My current interpretation of this statement is -> In 10 years, 25\$ Million investment resulted in nearly 1000\$ Million increase from Year 1 to Year 10 Sales ( i.e- if sales were 1000\$ Million in Year 1, now sales are 2000\$ Million by Year 10)

Sajjad1994 Help here would be greatly appreciated in breaking down the meaning of this sentence
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
can someone explain why Q2 isn't 1994-1996?
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
JoeAa wrote:
can someone explain why Q2 isn't 1994-1996?

The statement states that it was only during 1993-1998 period that both income and consumption increased. We have to find a timeperiod other than this that too follows the same relation.

1994-1996 is already a part of the period 1993-1998, and does not question the statement.
Only in 1987-1988, the increase in consumption is related to increase in income.
All other options either fall in 1993-1998 period or do not follow the directly proportional relation. for example 1998-2003 has income decreasing and per capita consumption increasing, thus agreeing to the statement.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
chetan2u wrote:
JoeAa wrote:
can someone explain why Q2 isn't 1994-1996?

The statement states that it was only during 1993-1998 period that both income and consumption increased. We have to find a timeperiod other than this that too follows the same relation.

1994-1996 is already a part of the period 1993-1998, and does not question the statement.
Only in 1987-1988, the increase in consumption is related to increase in income.
All other options either fall in 1993-1998 period or do not follow the directly proportional relation. for example 1998-2003 has income decreasing and per capita consumption increasing, thus agreeing to the statement.

Ah got it thanks. didn't realise there's an implication of asking another period.
Is the hint the word'over simplification'?
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
KarishmaB

Mam,
I have a doubt in Q2 of this MSR.
Initially my understanding of “oversimplification” was that “It is not true”.
However, I figured that it actually means ” to not provide a complete picture or all the factors affecting the issue ” .
Even, then I am not convinced how we arrived at the answer as mentioned there.
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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'Simplification' means that some details have been glossed over.  'Oversimplification' means the some details have been glossed over, which should have been taken into account. This much simplification was uncalled for and perhaps made the statement incorrect.

Statement:
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.

In second graph, we see that 1988 to 1989 too monthly income increases and coffee consumption increases too. That is why the statement becomes incorrect.
pyroabhi wrote:
KarishmaB

Mam,
I have a doubt in Q2 of this MSR.
Initially my understanding of “oversimplification” was that “It is not true”.
However, I figured that it actually means ” to not provide a complete picture or all the factors affecting the issue ” .
Even, then I am not convinced how we arrived at the answer as mentioned there.

­­
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
faat99 wrote:
Q1 for the last option "As a means of boosting world coffee demand, increasing consumption of domestically produced coffee has greater potential in India than in China."

I do not agree with the OA that the answer is YES.

I understand the explanation that, as per first graph, India has an existing large coffee production so it seems to have a larger potential (while China has neither). There is no definition of "potential" in the discussion, and the discussion also clearly suggests the potential depends on the state of the market (mature of developed). There is no description of the state of the Indian or Chinese Market.

­
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Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
Can someone please explain in simpler terms what Question 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 even means, I got pretty confused with the words which led to the wrong answer.

TIA.
Re: The rate of growth in global coffee consumption has been falling behin [#permalink]
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