Here is the OESolution:
Step 1 – Analyzing the stimulus and question stemThe climatic conditions needed for growing tea exist in only a few countries.
• The climate that favours tea growing is present only in some countries.
India is one of the few major producers of tea and exports tea to many tea drinking countries.
• India is one of the few main producers of tea.
• It exports tea to several tea drinking countries
This year, the production of tea in India has been significantly lower than that in the last ten years.
• In India the production of tea this year has been much less than the production in the last decade.
With just enough to satisfy domestic demand for tea, India will not be able to export any sizeable amount of tea.
• India can just about meet the demand for tea in the country.
• So, it will not be able to export much tea to any country.
As a result, the tea prices on the international market are expected to increase.
• Conclusion: Therefore, the tea prices in the world market are going to rise.
Step 2 – Pre-thinking1. The author reasons that since India is a major producer of world tea, if its tea exports are reduced, the supply of the tea exports worldwide will be impacted such that the international demand for tea remaining the same, the prices will rise
2. Missing Link
a. The passage does not tell us that India is a major exporter of tea. We do not know India’s contribution to the world tea exports. What if Indian tea exports form only a small proportion of world tea exports? In that case, even if the export of Indian tea is highly reduced in quantity, the world demand may be met by other exporters of tea which are major exporters. With there not being much shortage in supply, the world prices of tea may not rise.
i. Assumption#1: India’s tea exports comprise a significant proportion of world tea exports.
ii. Assumption#2: The rest of the world exporters of tea will not be able to sufficiently compensate for the reduction in tea exports from India.
b. What if there is a significant fall in the demand for tea in the tea importing countries for some reason? In that case, even with reduced supply from India, there may not arise sufficient shortage in tea supply to push up world prices.
i. Assumption#3: The world demand for tea will not decrease significantly.
3. Evaluate Question:
a. Whether India’s tea exports comprise a significant proportion of world tea exports?
b. Whether the rest of the world exporters of tea will jointly be able to sufficiently compensate for the reduction in tea exports from India?
c. Whether the world demand for tea will decrease significantly?
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A. Whether the international demand for coffee, a close substitute for tea has increased?
Option A Feedback:
The world demand for coffee can increase even without a decrease in the world demand for tea. This choice does not impact the conclusion and is out of scope.
Incorrect Choice.B. Whether the domestic demand for tea in many tea importing countries will decrease significantly?
Correct Option
Option B Feedback:
This choice is in line with pre-thinking evaluate question (c).
Correct Choice.C. Whether the production of tea in India was disturbed because of changes in climatic conditions in the country?
Option C Feedback:
The reasons behind reduced tea production in India are irrelevant to the conclusion.
Incorrect Choice.D. Whether the tea prices on the world market have often fluctuated in the past?
Option D Feedback:
Past fluctuations could have happened for multiple reasons and bear no impact on the current situation. This choice is also out of scope.
Incorrect Choice.E. Whether there are other producers of tea in the world producing sizeable quantities of tea?
Your Selection
Option E Feedback:
These other producers may not be major exporters of tea. This choice merely distorts given information. We already know that there are other major producers of tea from the line “India is one of the few major producers of tea..”.
Incorrect Choice.