Question

Prolonged spells of hot, dry weather at the end of the grape-growing season typically reduce a vineyard’s yield, because the grapes stay relatively small. In years with such weather, wine producers can make only a relatively small quantity of wine from a given area of vineyards. Nonetheless, in regions where wine producers generally grow their own grapes, analysts typically expect a long, hot, dry spell late in the growing season to result in increased revenues for local wine producers.

Which of the following, if true, does most to justify the analysts’ expectation?

 

(This question is from Official Guide. Therefore, because of copyrights, the complete question cannot be copied here. The question can be accessed at GMAT Club)

Solution

Understanding the Passage. 

Prolonged spells of hot, dry weather at the end of the grape-growing season typically reduce a vineyard’s yield, because the grapes stay relatively small.

Long period of hot, dry weather at the end of the grape-growing season generally reduces a vineyard’s produce.

How does the produce go down?

The grapes stay relatively small. (it’s not about fewer grapes; it’s about the size of the grapes)

In years with such weather, wine producers can make only a relatively small quantity of wine from a given area of vineyards.

The statement talks about the years which have hot, dry weather at the end of the grape-growing season.

In those years, wine producers can make only a comparatively small quantity of wine per a given area of vineyards.

Nonetheless, in regions where wine producers generally grow their grapes, analysts typically expect a long, hot, dry spell late in the growing season to result in increased revenues for local wine producers.

“Nonetheless” indicates a contrast. We can expect something contrary to the previous statement in this statement.

Analysts generally expect such hot, dry weather to lead to increased revenue for local wine producers.

So, the expectation is that such hot, dry weather is beneficial for local wine producers.

This is in contrast to the previous statement in which it seemed that this weather is not beneficial for the wine producers since such weather reduces the amount of wine per area of vineyards.

The GIST

Overall, the passage presents a paradoxical situation.

Even though a given type of weather reduces the amount of wine produced per a given area of vineyards, this weather is expected by analysts to lead to increased revenues for local wine producers.

(One reason why this can happen is that reduction in production of wine increases the price of wine signficantly. As a result, wine producers make more money out of a small quantity of wine.)

The question stem asks for an option that does most to justify the analyst’s expectation. Thus, we’re looking for an option that supports that hot, dry weather at the end of the grape-growing season will lead to increased revenues for winemakers.

Evaluating the Options

(A) Incorrect.

I believe that people who mark this option forget that we’re looking for an option that indicates “increased revenues” and NOT “increased profits”.

This option talks about less labor – this can indicate lower costs and perhaps more profits. However, this option nowhere indicates “increased revenues”.

Let’s say that the analysts’ expectations were around “increased profits”. Would this option be correct then?

No. This option would still be incorrect.

The following version of the option would be correct in case of “increased profits”:

A lower vineyard’s yield will SIGNIFICANTLY lower the labor required to harvest the grapes.

In other words, for this option to indicate “increased profits”, the costs would need to go down more than proportionately to revenues. If revenues and costs go down in the same proportion, the profits too have to go down.

(B) Incorrect

The option talks about the spells at the beginning of the season; the argument is about the spells at the end of the season.

How rare or frequent the long hot, dry spells at the beginning of the season are is irrelevant. Also, how devastating they are is irrelevant.

(C) Incorrect

This option gives us information about where the grapes are made into wine; it says that grapes are made into wine at or near the vineyard in which the grapes are grown. In other words, the grapes are not converted into wine in a faraway location.

However, where this conversion takes place is irrelevant to the analysts’ expectation.

(D) Incorrect

This option talks about specific times when hot, dry spells are followed by heavy rains. In such times, the grape crops are frequently destroyed.

However, what happens in these times is not relevant.

We’re concerned with why long hot, dry spells lead to increased revenues for winemakers.

(E) Correct 

This option indicates that hot, dry spells at the end of the grape-growing season lead to better wine.

Does better wine mean more revenues?

NOT necessarily.

However, more likely than not. (Ceteris paribus, we can expect better wine to fetch more revenues.)

It’s important to be aware that we’re not looking for surety that hot, dry weather will lead to increased revenues for local wine producers. We’re looking for an option that supports/strengthens this idea.

This option does support this idea.

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