Insect infestations in certain cotton-growing regions of the world hav

Question

Insect infestations in certain cotton-growing regions of the world have caused dramatic increases in the price of cotton on the world market. By contrast, the price of soybeans has long remained stable. Knowing that cotton plants mature quickly, many soybean growers in Ortovia plan to cease growing soybeans and begin raising cotton instead, thereby taking advantage of the high price of cotton to increase their income significantly, at least over the next several years.

Which of the following, if true, most seriously weakens the plan's chances for success?

A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb.

B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infested cotton crops.

C. In the past several years, there has been no sharp increase in the demand for cotton and for goods made out of cotton.

D. Many consumers consider cotton cloth a necessity rather than a luxury and would be willing to pay significantly higher prices for cotton goods than they currently pay.

E. The species of insect that has infested cotton plants has never been known to attack soybean plants.

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Official Answer

B

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AnandDoss2004 · Answer

Plan:  switch to Cotton from Soybean to increase income

Success Factor:  high price of cotton

Reason:  Infestation leads to reduced supply and therefore more demand = more price.

Which of the following, if true, most seriously weakens the plan's chances for success? -  anything that breaks high price of cotton and its reason

A. The cost of raising soybeans has increased significantly over the past several years and is expected to continue to climb. - so what? cotton may increase more than this speed.  Rejected

B. Tests of a newly developed, inexpensive pesticide have shown it to be both environmentally safe and effective against the insects that have infested cotton crops. - reduce infestation = more supply = lower price.  Satisfied

C. In the past several years, there has been no sharp increase in the demand for cotton and for goods made out of cotton. - no problem. steady increase is also fine for high price of cotton.  Rejected

D. Many consumers consider cotton cloth a necessity rather than a luxury and would be willing to pay significantly higher prices for cotton goods than they currently pay. means high price of cotton is justified. Strengthening the plan.  Rejected

E. The species of insect that has infested cotton plants has never been known to attack soybean plants. - who cares about soybean.  Rejected

harish555 · Answer

I go with B. 
Increase in Insect infestation-> increase in price of cotton
If decrease in infestation-> decrease in price of cotton

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btsaami · Answer

Assumption: 1 Growing cotton will be more profitable than growing soyabean over the next few years.
2. Many farmers growing cotton will still keep the cotton price higher and in turn higher profit.
3. Switching to cotton from soybean will have no issue.
Premise: the price of soybeans has long remained stable. cotton plants mature quickly.
Prethinking: Answer which attacks the goal that income will increase significantly with cotton investment.
Why correct? B) With an effective insecticide, the cases of infestation will decrease --> result in cotton growth normally --> Avaiability of cotton in market --> Price will not increase that much --> Not much profit or no profit. Hnec correct.
Why wrong? A) This gives a reason why they should switch from Soybean but doesn't answer whether growing switching to cotton from soybean will increase the profit. Irrelevant
C) No sharp incraese in demand for cotton but infect infestation could have led to shortage of cotton due to which price increased. This can still still generate profit for farmers.
D) No evidence given to support that customer willingness to pay higher price will result in profit to farmers switching crops.
E) Gives a reason not to switch from soybean to cotton and doesnt answer whether cotton growing will result in more profits. Irrelevant

Insect infestations in certain cotton-growing regions of the world hav

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Insect infestations in certain cotton-growing regions of the world hav

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