If grain prices double then the average price of a loaf of bread will rise between 10 and 15 percent, whereas the pri...

SamA on January 8, 2020

Hello @rpark,

According to the stimulus, an increase in grain prices will have a greater effect on grain-fed beef prices than it will on bread prices.

Which answer choice would explain this phenomenon?

B does not explain it, because the price comparison between these two commodities doesn't matter. The phenomenon in question is that the price of one commodity had a greater increase than the other. This is a percent increase, meaning it is proportional. Their relative prices do not explain why bread prices jumped by only 10-15% while beef prices jumped almost 100%.

C gives us the explanation we need, because it states the difference between bread production and beef production. Labor and marketing makes up the bulk of bread-making costs. However, a doubling of grain prices would have a much greater effect on the beef industry, because feed is its greatest cost.

Make sure you understand the difference between rate/percentage vs. absolute number/quantity. There are many questions on the LSAT that will test this.