A passage is given below, followed by five options.

Solution

Analysis of the Passage: The argument claims that a decrease in price (due to the subsidy) will lead to an increase in exports. This logic relies entirely on the idea that the current barrier to buying Brazilian coffee is its cost relative to competitors. Identifying the Assumption: For the subsidy to result in more sales, it must be true that price is a significant factor in the European companies' decision-making process. If they would choose Brazilian beans once they become the cheaper option, then the plan works. This makes C the foundational assumption. A is incorrect: The passage focuses on switching the source of coffee due to price, not necessarily increasing the total amount of coffee produced globally. B is incorrect: The passage uses "affordability" (cost) as the reason for the rise, not quality. Assuming Brazilian coffee is better quality is an external value judgment not required for the price-based argument to hold. D is incorrect: Even if global demand were stagnant, Brazilian exports could still rise by taking market share away from East Africa or Southeast Asia due to the lower price.