40. The following appeared as part of an article in a weekly newsmagazine.
“The country of Sacchar can best solve its current trade deficit¹ problem by lowering the price of sugar, its primary export. Such an action would make Sacchar better able to compete for markets with other sugar-exporting countries. The sale of Sacchar’s sugar abroad would increase, and this increase would substantially reduce Sacchar’s trade deficit.”
一份周刊上的文章：
Sacchar国解决其赤字的最好方法是降低其主要出口物糖的价格。这一举动将使Sacchar与其他糖出口国更好的竞争。Sacchar出口的糖将会增加，这一增长将实在地降低Sacchar的贸易赤字。
1比起价格下降而带来的损失产量提高的影响是不是更大不是定数Increasing sales by lowering the price of sugar will not yeild an increase in income unless the increase in sales is sufficient to overcome the loss in income due to the lower price. in the absence of ...
2可能性价比本来就很有竞争力了不需要降价，也可能价格已经很低了没有降低的空间了
3降低进口可能是一个更好的办法A trade-deficit occurs when a country spends more on imports than it earns from exports. However, the author provides no evidence that substantiates² this assumption. It is possible that revenues from imports will increase dramatically in the near future; if so, the course of action proposed by the author might be unnecessary to solve Sacchar's trade deficit proplem. To the extent that this is the case...
The author of this article argues that the country of Sacchar can best solve its current trade deficit problem by lowering the price of its main export, sugar. The line of reasoning is that this action would make Sacchar more competitive with other sugar-exporting countries, thereby³ increasing sales of Sacchar’s sugar abroad and, in turn, substantially reducing the trade-deficit. This line of reasoning is unconvincing for a couple of reasons.
In the first place, this argument is based on an oversimplified analysis of the trade deficit problem Sacchar currently faces. A trade-deficit occurs when a country spends more on imports than it earns from exports. The author’s argument relies on the assumption that earnings⁴ from imports will remain constant. However, the author provides no evidence that substantiates this assumption. It is possible that revenues from imports will increase dramatically in the near future; if so, the course of action proposed by the author might be unnecessary to solve Sacchar’s trade deficit problem. Conversely, it is possible that revenues from imports are likely to decrease dramatically in the near future. To the extent that this is the case, lowering sugar prices may have a negligible countervailing effect, depending on the demand for Sacchar’s sugar.
In the second place, increasing sales by lowering the price of sugar will not yield an increase in income unless the increase in sales is sufficient to overcome the loss in income due to the lower price. This raises three questions the author fails to address. First, will a price decrease in fact stimulate⁵ demand? Second, is demand sufficient to meet the increase in supply? Third, can Sacchar increase the sugar production sufficiently⁶ to overcome the deficit? In the absence of answers to these questions, we cannot assess the author’s proposal.
In conclusion, the author provides an incomplete analysis of the problem and, as a result, provides a questionable⁷ solution. To better evaluate the proposal, we would need to know how revenues from imports are likely to change in the future. To strengthen the argument, the author must provide evidence that demand is sufficient to meet the proposed increase in supply, and that Sacchar has sufficient resources to accommodate the increase.

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