Official Solution:
Bacterial damage in most wheat-growing regions in Serbia has caused a major increase in the price of wheat in the Serbian market. On the other hand, the price of rice has remained stable for a long time. This has led many Serbian rice farmers to decide to grow wheat instead, to take advantage of the high prices in the Serbian agro-market and increase their income, at least in the next few years.
Which of the following, if true, would most seriously weaken the plan's chances for success?
A. The cost of farming rice has increased significantly over the last few years, and analysts claim that it will only go up in the coming years.
B. In the last few years, the demand for wheat or wheat products has not risen sharply.
C. Research shows that the bacteria is immune to pesticides and can be transmitted from one farming area to another very quickly.
D. The rice farmers who are planning to shift to wheat farming will not be able to compensate for the current deficit in wheat supply with their wheat production.
E. The traits of the bacteria that seem to have attacked the wheat farms in Serbia have no effect on the rice plantations.
Premise: Wheat prices have risen because of shortage in supply.
Conclusions: Rice farmers who shift to wheat farming will gain from the high prices for wheat.
The correct option would present a possibility that might cause the plan (to make money from the high prices) to fail, i.e. the new wheat farmers would not be able to take advantage of the high price.
A. This option gives all the more reason for a rice farmer to shift to wheat farming and hence is strengthening the plan of the rice farmers deciding to shift to wheat farming.
B. the current situation is as follows: a deficit in supply has caused the price of wheat to rise significantly. If a farmer can grow wheat, they can sell it at a much higher price than usual. This price discrepancy is not due to increase in demand but decrease in supply. Answer choice B) does not actually tell us anything new - we already knew from the question that the supply was the culprit. Even with the previous level of demand, there is a serious shortage. While it would be nice to also have an increase in Demand (this would make it even more profitable), we do not need increase in demand for the plan to succeed as lots of wheat farms have been knocked out off line and as the question says, at least for the next few years there is an expectation that the wheat shortages will persist. Thus telling us that there is no increase in demand, does not weaken the plan in any way, it just does not make it stronger.
C. CORRECT. This option presents a possibility that might cause the plan of the new wheat farmers to fail. Since the bacteria can be transmitted to new farming areas and are immune to pesticides, the new wheat farmers’ crop may also be damaged and hence their plan for making money would not be successful - even though the price in the market rises, there would not be wheat to supply because of the bacterial damage.
D. This option strengthens the plan - after the new wheat farmers start supplying to the market, the demand would still be higher than the supply. Thus the price will continue to remain high, thereby making the plan (to make money from the high prices) of these farmers who shifted from rice to wheat successful.
E. This option assures the farmers who remain in rice farming of continued revenues, but this option has no relevance to the farmers who plan to shift to wheat farming. The correct option must present a possibility that might cause the plan of the new wheat farmers (to make money from the high prices) to fail.
Answer: C