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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
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I chose to mark B. Can anyone explain why it is C
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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
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As a result, the retail price of chocolate is certain to increase within six months.


Because we are trying to evaluate the above argument. We're not evaluating whether or not consumers are willing to pay more for chocolate. That's how I saw it.
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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
I thought it would be A, if the prices have remained steady in the past, it is possible it will remain steady now too.
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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
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kruttikaaggarwal wrote:
I thought it would be A, if the prices have remained steady in the past, it is possible it will remain steady now too.


What you say does seem to make sense. If in other poor harvests the price has not moved then why should it move this time?

But you must read this very carefully, which price does choice A say has remained steady? The price of the beans, right?

However, the point is that according to the stimulus the price of cacao beans has already increased. So it does not matter what we expect or what happened in the past. If Mexico beat Brazil in soccer yesterday then it does not matter that Brazil has always defeated Mexico in the past. The likelihood of Mexico winning is 100% since they have in fact won.

That is why I indicated that choices A and D are basically irrelevant. These factors speak to the likelihood of a increase in the price of the cacao - but since that increase has, in fact, occurred then the likelihood is now 100%!

Does that help?
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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
Final Price is most often affected by the costs associated with producing a goods. In the case of chocolate, besides the price of the cacao, which is the main ingredient, we should alto take into consideration sugar, butter, milk,... supplies too. Hence, C seems most reasonable to me.
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Re: Because of a rare type of fungus that killed off many cacao [#permalink]
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