Critical Reasoning

This is a question from princeton, but found the reasoning is not clear. Please discuss..

Country L used to import wheat from Country S because Country S's price per bale was the cheapest available. When Country S raised its price by 25 percent, however, Country L decided to transfer its business to Country D, which now boasted the best deal available.

Which of the following, if true, would be best supported by the assertions above?

A. The cost to harvest a bale of wheat in country S increased by 25 percent.
B. If Country S were to lower its price below Country D's price, then Country L would resume its import relationship with Country S.
C. If Country L could somehow reduce the cost of producing domestic wheat by 25 percent, it wouldn't need to rely on any wheat imports.
D. Country S and Country D do not import or export any wheat from each other.
E. If Country D were to increase its price per bale of wheat by 25 percent, then a bale of wheat from Country S would once again be less expensive.

OA after a while.

"B" seems correct: John buys from mike for $10, john buy from adam for 8, if mike lowers price below Adam price of 8, then John will buy from Adam again

imo it's E. While B could be correct, it involves assuming that no other country would offer a lower price (like country Z or something).

E will always be true because it's not a conclusion about actions but about states. If S < D (at the beginning) then 1.25 S < 1.25 D. In other words, if both countries raise their prices by the same proportion, then yes, S will once again offer the cheaper price.

What is OA ?

OA is E, but I didn't get why B is wrong. The given statement states that when Country S raised by 25%, business shifted to Country D and it is best deal. So Country D is next cheap price after Country S. No other country is cheaper price than D.

So still B is correct. Please kindly clarify...

When Country S raised its price by 25 percent, however, Country L decided to transfer its business to Country D, which now boasted the best deal available

naveenk wrote:OA is E, but I didn't get why B is wrong. The given statement states that when Country S raised by 25%, business shifted to Country D and it is best deal. So Country D is next cheap price after Country S. No other country is cheaper price than D.

So still B is correct. Please kindly clarify...

When Country S raised its price by 25 percent, however, Country L decided to transfer its business to Country D, which now boasted the best deal available

I got this wrong too, although I know the principle well which makes mad as hell.

Anyways, With must be true questions the answer choices are suspect, they should not introduce new elements not explicitly stated in the stimulus. Another example of these questions is drwa a conclusion, you put the evidence together to formulate a conclusion that has the least new information as possibe-usually no new info.

In choice "B" there is an implication of how the buying country makes a decision to buy grain tah in turn intrudoces new elemnt" will buy from country..." maybe country Z offers a cheaper price than both countries.

Chhoice "E" is only a statement that doesn't want you to think much when you expect most questions to be challenging. It is logically an irrelevant answer to any thinking animal, but GMAC wants it the way they want it.

well i opted for E ,
though B is a strong contender but i think best deal does not means chepest deal . May be country S is playing the quality to bring down the cost.

take for an eg- a guy's monthly grocery bill from shop A for home delivery was is 200$ , but shop A increased it by 10$ forcing the gy to move to shop B.
Now again shop a has reduced the price , but may be this time home delivery is not there so the guy may not be interested to switch over.

on the other side E is crystal clear that once shop b is inc by 25% then Shop A will agin be the less expensive one.

Option E states the reason why the country stick or choose country D for importing.

Option B doesn't stand as a strong contender as it is not inline with the conclusion made above rather it is giving a way to retain the customer which is no where related to assertion

I culd see the "angry" faces when guys picked B for E!!

IMO ans should be "E".As B says it will reduce its price again but doesnt mention how much ..so if he lowers the price but is still more than price given by Country L then business will not go to country s

thanks guys..I hope such q's won't come in exam.

In my opinion E is the most logical one.