The state of Maharashtra had a poor wheat yield season because of a climatic disaster; this poor yield results in higher prices for a bag of wheat. Wheat prices in other states will rise as well, whether or not those states are net importers of wheat.
Which of the following conclusions is best supported by the statement above?
- Agricultural commodities companies in states that are not net importers of wheat are excluded from the national wheat market when there is a disruption in the national wheat supply.
- National wheat supply disruptions have little, if any, effect on the price of local wheat as long as the locality is in a state that is not a net importer of wheat.
- The wheat market in any state is part of the national wheat market even if most of the wheat consumed in the state is produced in the state.
- Poor yield seasons come at predictable regular intervals.
- Higher prices for wheat tend to lead to increased prices for livestock, which rely on wheat feed.
Summary of the argument: Decrease in the crop yield in the state has resulted in increase in prices in other states as well, the conclusion for the argument will provide clear reasoning for the same.
- The information about the agricultural commodities is out of scope for the argument. Hence eliminated.
- This answer choice is the complete opposite of the required conclusion. Hence eliminated.
- Decrease in wheat yield in one state affects the national wheat market, which in turn increases the prices in other states. Hence, this is the right answer.
- The argument is about the increase in the price. Hence eliminated.
- The information about the price for the livestock is irrelevant for the argument. Hence eliminated.