The price of titanium dioxide, a key ingredient in house paint, is increasing due to limited supplies because many mining companies that once produced titanium ore have shifted production to other ores. Without titanium dioxide, paint colors are less bright and more coasts of paint must be applied to compensate. Companies that produce paint have concluded that they will soon need to increase the prices on the paint they produce.
Which of the following would, if true, most strongly support the companies’ conclusion?
A Prices for paint ingredients other than titanium dioxide are not likely to increase.
B Plants that make titanium dioxide from titanium ore can be idled and restarted relatively quickly.
C The production cost of paint without titanium dioxide is not low enough to make such paint economically viable to compete with paint containing titanium dioxide.
D Because of recent increases in the price of titanium ore, mining companies that shifted production to other ores are now shifting back to producing titanium ore.
E Manufacturers of paint typically contract with chemical makers to lock in the price for at least a year's supply of titanium dioxide at a time.
Summer is the peak season for Maine lobster in the United States. This summer in the state of Maine, the price of lobster has fallen dramatically. A solid harvest and diminished demand for diners adjusting to a weak economy have pushed down the retail price of lobster in Maine to that of sliced turkey. Despite this situation, lobster lovers outside Maine will see no change in price.
Which of the following would, if true, most help to explain the stability of the price of lobster outside of Maine?
A Residents of Maine have historically consumed more lobster than have residents of other areas of the United States.
B Health-conscious shoppers in all areas tend to prefer poultry, fish or lean cuts of beef to lobster regardless of its price.
C The weak economy has made people in all areas less likely to eat foods that are considered luxuries, like lobster.
D Newly restrictive laws limiting the number of lobsters that may be caught in Maine have recently gone into effect.
E A large proportion of Maine’s summer lobster catch is soft-shelled and is thus too fragile to ship long distances.