In Kaelen, the government recently provided a massive subsidy for farmers to purchase high-yield seed varieties. The stated goal was to increase overall crop production in order to lower retail food prices for residents. One year later, agricultural reports confirmed that total crop production in Kaelen had indeed reached record highs, and overall consumer demand for food remained constant. Nevertheless, the average retail price of food in Kaelen increased significantly over that same period.
Which of the following, if true, most helps to resolve the apparent paradox described above?
- AThe new high-yield seeds required significantly less water and chemical fertilizer than traditional varieties, substantially lowering the overall operational costs for Kaelen's farmers.
- BNeighboring provinces that did not implement any seed subsidies also experienced minor increases in their retail food prices over the same one-year period.
- CMany farmers who received the subsidy used part of the funds to upgrade their harvesting equipment rather than solely purchasing the high-yield seeds.
- The unprecedented volume of harvested crops overwhelmed Kaelen’s limited processing and storage facilities, resulting in massive spoilage that left the retail market with less sellable food than in previous years.Cevap
- EAlthough total crop production reached record highs, the percentage of Kaelen's annual budget dedicated to agricultural subsidies was smaller than initially projected.
Cevap
The statement explaining that an unprecedented harvest overwhelmed facilities and caused massive spoilage, resulting in less sellable food.
The correct answer resolves the paradox by demonstrating that while initial crop production (the harvest) increased, a severe bottleneck in processing and storage caused massive spoilage. This means the actual supply of sellable food reaching the consumer market decreased. With a lower sellable supply and constant demand, the significant increase in retail food prices is perfectly logically explained, successfully bridging both facts presented in the stimulus.
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Anahtar Kavram
Eliminating Paradox-Deepening Traps and Resolving Discrepancies