A passage is given below, followed by five options. Choose the option that represents the assumption underlying the information given in the passage. Passage: Coffee exports from Brazil to Northern Europe are expected to increase significantly next quarter. The primary reason is that the Brazilian government has introduced a new transport subsidy that makes Brazilian coffee beans much more affordable for European roasting companies than beans sourced from East Africa or Southeast Asia. Which of the following is an assumption made in drawing the conclusion above?

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.