Because an oversupply of computer chips has sent prices plunging, the manufacturer has announced that it will cut production by closing its factories for two days a month.
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The sentence says that an oversupply of computer chips has resulted in a drop in the prices of the chips. As a result, the manufacturer has announced that it will cut production by closing its factories for two days a month.
The sentence is logically and grammatically correct.
(B) Incorrect. Singular verb “is” doesn’t agree with plural “prices” (‘which’ refers to ‘prices’)
(C) Incorrect. The antecedent for “which” is not clear or, rather, doesn’t logically exist in this option. One way to correct this option is: “because computer chip prices have been sent plunging by an oversupply”. However, in this case too, option A is better because option A communicates the idea in a more direct - active - voice.
(D) Incorrect. For the following reasons:
- “plunging computer chip prices from an oversupply” doesn’t communicate the idea clearly that computer prices are plunging from an oversupply.
- “Due to” is an adjective and thus modifies only nouns, not verbs. In this sentence, the underlined part modifies the main verb “has announced”. Therefore, the use of “due to” is incorrect. Please refer this page for more details.
(E) Incorrect. For the following reasons:
- Use of “due to” and “with the result” together creates redundancy.
- Error no. 2 of option D