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Farmers in a district harvested their largest onion crop in a decade this season, yet the average income each farmer earned from onions was lower than in the previous season. Which of the following, if true, best explains this?

Competition practiceLogical / Critical
  • AOnions are kept in ventilated sheds for some weeks before they are sold
  • BThe number of farmers growing onions in the district was the same as in the previous season
  • CThe harvest was unusually large across the whole growing region, and the price paid per quintal fell by a greater proportion than the quantity each farmer sold rose
  • DSome of the district's farmers grow potatoes as well as onions

Step-by-Step Solution

Income is quantity multiplied by price. A bumper harvest across the whole region pushes the price down for everyone, and if the price falls proportionately further than the quantity rises, each farmer earns less despite selling more. Storage practice, an unchanged number of growers and a second crop leave both quantity and price where they were and so explain nothing.
Answer: C) The harvest was unusually large across the whole growing region, and the price paid per quintal fell by a greater proportion than the quantity each farmer sold rose

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