Question

Difficulty: MediumInferential Comprehension and Deduction

Read the passage below carefully and answer the question that follows:

For generations, temperate vegetable farmers on Nigeria's high-altitude Jos Plateau struggled with catastrophic post-harvest spoilage, as delicate produce like tomatoes and strawberries deteriorated rapidly during long transit to distant urban markets. To mitigate these losses, local agricultural cooperatives recently established decentralized, solar-powered cold-storage hubs adjacent to rural farm clusters. This technological intervention transformed traditional supply chain dynamics. By preserving crop freshness for weeks rather than days, the storage units eliminated the desperate urgency that previously forced farmers to sell their harvests immediately at whatever price buyers offered. Consequently, smallholders gained the leverage to withhold produce during peak harvest gluts and release it strategically as regional market supply ebbed. While this shift smoothed seasonal price volatility across major cities, urban wholesale merchants—who had historically capitalized on distress selling to secure exceptionally high profit margins—encountered a noticeable contraction in their earnings.

Based on the passage, what can be inferred about the economic relationship between smallholder farmers and urban wholesale merchants prior to the introduction of cold-storage hubs?

  1. The high profit margins of urban wholesale merchants were significantly enabled by the rapid perishability of the farmers' produce.Answer
  2. B
    Urban wholesale merchants provided financial support to establish solar-powered storage facilities across rural farm clusters.
  3. C
    Smallholder farmers intentionally reduced their total harvest volumes to manipulate seasonal market prices in urban centers.
  4. D
    Temperate crops could not be cultivated successfully on the Jos Plateau due to adverse tropical weather conditions.

Answer

The high profit margins of urban wholesale merchants were significantly enabled by the rapid perishability of the farmers' produce.
The passage notes that before cold-storage hubs existed, rapid crop spoilage forced farmers into distress selling, which urban wholesale merchants capitalized on to extract exceptionally high margins. Eliminating spoilage directly contracted these margins, proving that the merchants' advantage depended on the perishable nature of the produce.

Step-by-Step Solution

1
Analyze the implicit relationship described in the passage prior to cold-storage adoption.
Before storage hubs existed, crops spoiled rapidly, creating urgent distress selling by farmers.
Understanding the baseline condition before the technological intervention is essential for deduction.
2
Connect distress selling to the financial outcome of urban wholesale merchants.
The text indicates merchants capitalized on this forced urgency to gain exceptionally high profit margins.
Synthesizing cause (crop perishability forcing distress sales) and effect (high merchant profit margins) reveals their economic dependency.

Key Concept

Inferential Comprehension and Deduction
Estimated Time:1m 30s
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