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700 question

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700 question [#permalink] New post 02 Dec 2008, 08:12
The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors’ economic stance against the ban?

a. In the provinces that restricted alcoholic beverages, there was a
short-term negative impact on restaurant visitation in the beginning
of last year.
b. The sales tax in Prohibitionland is lower on food and beverages than
it is on other consumer goods, such as clothing.
c. The consumption of alcoholic beverages in Prohibitionland has been
on a gradual decline the last 20 years.
d. The restrictions on alcoholic beverages enacted last year allowed for
the service of drinks beginning around dinnertime each evening.
e. Overall sales tax revenue did not increase at a substantially higher
rate in the provinces that enacted the restrictions on alcoholic
beverages than in the rest of Prohibitionland last year.
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Re: 700 question [#permalink] New post 02 Dec 2008, 08:29
It looks like its not either choice?

The government was motivated with reasons other then economic to prohibit the alcohol but the question asks for propertios economic stance!?

I would guess E and move on with a cursing word at the GMAC expense...
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Re: 700 question [#permalink] New post 02 Dec 2008, 11:45
I've seen this one before. I think the answer is D because the only reason why the restricted restaurants made more money was because the ban was lifted at dinner time, and those areas could have already been popular areas so now they are making alot of money serving dinner on top of the money from the drinks
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Re: 700 question [#permalink] New post 02 Dec 2008, 12:16
I also chose D as my answer.
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Re: 700 question [#permalink] New post 02 Dec 2008, 17:29
Why not A?
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Re: 700 question [#permalink] New post 02 Dec 2008, 22:31
E!

Proponents of ban citing sales tax increase a case to supplement their case against proprietors.

I think E makes to cut to undermine the argument.
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Re: 700 question [#permalink] New post 02 Dec 2008, 23:35
But isnt the question asking for support on the propietor's stance for protesting the ban?
should be A.
If the restos with bans made more money by (D) why would the owners still protest the ban on economic grounds??

Had the ques. asked for info to resolve the discrepancy that inspite of the ban restos are making money,
D is correct.
hanumayamma wrote:
E!

Proponents of ban citing sales tax increase a case to supplement their case against proprietors.

I think E makes to cut to undermine the argument.
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Re: 700 question [#permalink] New post 03 Dec 2008, 00:40
prasun84 wrote:
But isnt the question asking for support on the propietor's stance for protesting the ban?
should be A.
If the restos with bans made more money by (D) why would the owners still protest the ban on economic grounds??

Had the ques. asked for info to resolve the discrepancy that inspite of the ban restos are making money,
D is correct.
hanumayamma wrote:
E!

Proponents of ban citing sales tax increase a case to supplement their case against proprietors.

I think E makes to cut to undermine the argument.


I failed to comprehend the question. Now, I think, A should be the answer.
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Re: 700 question [#permalink] New post 05 Dec 2008, 06:41
My dear buddies.. The OA is D.

I dont know why !! . I better think that i never saw this question in my life rather than confusing myself
Re: 700 question   [#permalink] 05 Dec 2008, 06:41
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