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Re: Escalating worldwide demand for corn has led to a sharp increase in
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27 Feb 2023, 02:21
The argument discusses the impact of high corn prices on the meat industry. It states that livestock farmers are likely to leave the business, leading to a decrease in supply and increase in meat prices. However, observers expect a short-term decrease in meat prices. The correct answer choice must explain why meat prices will decrease in the short-term despite a decrease in supply.
(A) This answer choice suggests that the increase in corn prices is due to a decline in the supply of corn. This answer choice doesn’t explain why meat prices will decrease in the short term. Hence, it is incorrect.
(B) This answer choice suggests that farmers who leave the livestock business send their livestock to the market earlier than they otherwise would. This implies that there will be a temporary increase in the supply of meat, leading to a short-term decrease in meat prices. Therefore, this is the correct answer choice.
(C) This answer choice suggests that some people are converting to diets that include little or no meat. This doesn’t explain why meat prices will decrease in the short term. Hence, it is incorrect.
(D) This answer choice suggests that as meat prices rise, the number of livestock producers is likely to rise again. This implies that the supply of meat will increase, leading to a decrease in meat prices in the long term. This answer choice doesn’t explain why meat prices will decrease in the short term. Hence, it is incorrect.
(E) This answer choice suggests that livestock producers will start using feed other than corn more extensively than they did in the past. This doesn’t explain why meat prices will decrease in the short term. Hence, it is incorrect.
Therefore, the correct answer choice is (B).