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Escalating worldwide demand for corn has led to a sharp increase in the market price of corn, and corn prices are likely to remain high. Corn is extensive used as feed for livestock, and because profit margins are tight in the livestock business, many farmers are expected to leave the business. With fewer suppliers, meat prices will surely rise. Nonetheless, observers expect an immediate short-term decrease in meat prices.

Which of the following, if true, most helps to justify the observers' expectation?

正确答案: B

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求救!!很困惑的题

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发表于 2011-3-28 20:40:19 | 只看该作者 回帖奖励 |倒序浏览 |阅读模式
我选的是E。B里尽管把牲畜提前卖掉,但是数量不变的情况下时间不影响价格吧……
Escalating worldwide demand for corn has led to a sharp increase in the market price of corn, and corn prices are likely to remain high.  Corn is extensive used as feed for livestock, and because profit margins are tight in the livestock business, many farmers are expected to leave the business.  With fewer suppliers, meat prices will surely rise.  Nonetheless, observers expect an immediate short-term decrease in meat prices.
Which of the following, if true, most helps to justify the observers’ expectation?
The increase in corn prices is due more to a decline in the supply of corn than to a growth in demand for it.
Generally, farmers who are squeezed out of the livestock business send their livestock to market much earlier than they otherwise would.
Some people who ate meat regularly in the past are converting to diets that include little or no meat.
As meat prices rise, the number of livestock producers is likely to rise again.
Livestock producers who stay in the business will start using feed other than corn more extensively than they did in the past.
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发表于 2011-3-28 20:58:46 | 只看该作者
Supply and demand. If the market is flooded with more supplies than the current market demans, the price will fall.

E might explain LONG term effect, but not "an immediate short-term decrease in meat prices."
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