Critical Reasoning

Contrary to earlier predictions, demand for sugarcane has not increased in recent years. Yet, even though prices and production amounts have also been stable during the last three years, sugarcane growers last year increased their profits by more than 10% over their previous year's level.

Any of the following statements, if true about last year, helps to explain the rise in profits EXCEPT:

(A) Many countries that are large consumers of sugarcane increased their production of sugarcane-based ethanol, yet their overall consumption decreased.
(B) Sugarcane growers have saved money on wages by switching from paying laborers an hourly wage to paying them by the amount harvested.
(C) The price of the oil, the major energy source used by sugarcane growers in harvesting their crops, dropped by more than 20%.
(D) Many small sugarcane growers joined together to form an association of sugarcane producers and began to buy supplies at low group rates.
(E) Rainfall in sugarcane-growing regions was higher than it had been during the previous year, allowing the growers to save money on expensive artificial irrigation.

OA: A

Why D can't be the answer?

Our goal in this sentence is to explain the paradox. Demand for sugarcane has not increased, accordingly we think that prices have not risen nor are greater amounts of sugarcane being sold. Yet profits have increased.

Logically, we think that costs may have dropped somehow permitting growers to increase profit at the same price and same demand. All of the answer choices should indicate that costs are lower EXCEPT one.

Answer choice (A) does not provide any indication that the costs have dropped. This is the credited response.

Answer choice (D) does indicate that costs are lower. Small sugarcane growers are buying in association, obtaining supplies at low group rates.

Our goal in this sentence is to explain the paradox. Demand for sugarcane has not increased, accordingly we think that prices have not risen nor are greater amounts of sugarcane being sold. Yet profits have increased.

Logically, we think that costs may have dropped somehow permitting growers to increase profit at the same price and same demand. All of the answer choices should indicate that costs are lower EXCEPT one.

Answer choice (A) does not provide any indication that the costs have dropped. This is the credited response.

Answer choice (D) does indicate that costs are lower. Small sugarcane growers are buying in association, obtaining supplies at low group rates.