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Director
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 937
Location: India
GMAT Date: 05-29-2013
GPA: 3.2
WE: Engineering (Transportation)
Followers: 13
Kudos [?]:
90
[0], given: 57
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Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 05:59
Question Stats:
65% (02:05) correct
34% (01:23) wrong based on 2 sessions
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices. If all of the statements above are true, which of the following is most likely to be damaged by the city council’s plan? A local chain of service stations, which will see fewer customers during the daily commute. Members of the bus drivers’ union, who will be forced to add more routes and work longer hours. The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months. Commuters who already use public transportation daily and who will face crowded conditions and travel delays. Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
Last edited by Archit143 on 20 Feb 2013, 01:35, edited 1 time in total.
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Director
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 937
Location: India
GMAT Date: 05-29-2013
GPA: 3.2
WE: Engineering (Transportation)
Followers: 13
Kudos [?]:
90
[0], given: 57
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 06:01
I feel that A should be answer....
Consider Kudos If my post helps
Archit
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Manager
Joined: 22 Jan 2013
Posts: 51
Followers: 0
Kudos [?]:
7
[0], given: 21
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 07:56
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city’s finances on the whole will not be negatively affected by higher gasoline prices.
If all of the statements above are true, which of the following is most likely to be damaged by the city council’s plan?
A local chain of service stations, which will see fewer customers during the daily commute. Members of the bus drivers’ union, who will be forced to add more routes and work longer hours. The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months. Commuters who already use public transportation daily and who will face crowded conditions and travel delays. Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
Conclusion: Due to this reduction of fares --> more money will be left in the hands of people--> city finances wont be negatively affected...
If in our answer choice if we can affect the underlined part we have our answer
Choice C states that by this plan the City will be left with an unbalanced budget, thereby affecting our conclusion. So, option C must be our option
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Director
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 937
Location: India
GMAT Date: 05-29-2013
GPA: 3.2
WE: Engineering (Transportation)
Followers: 13
Kudos [?]:
90
[0], given: 57
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 08:17
Hi aditya Good analysis adtiya, can you point out flaws in the reasoning of option A..... As the argument aims at bring flux in the economy by providing more money in the hands of the people. Hence if because of reduction in bus fares , some of the local chain loses their customers than isnt the economy getting affected.
Archit
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Manager
Joined: 22 Jan 2013
Posts: 51
Followers: 0
Kudos [?]:
7
[0], given: 21
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 08:42
Archit143 wrote: Hi aditya Good analysis adtiya, can you point out flaws in the reasoning of option A..... As the argument aims at bring flux in the economy by providing more money in the hands of the people. Hence if because of reduction in bus fares , some of the local chain loses their customers than isnt the economy getting affected.
Archit Hi Archit There are several flaws in A. To identify them we must first analyze what the conclusion is and only then can we proceed further. The conclusion is: more money will be left in the hands of people--> city finances wont be negatively affected...Now to analyze option A. We need to get answers for other questions to check the scope of this statement, for example, from the premise we have :the city council has decided that fares on all forms of public transportationWhat is the scope of A local chain of service stations in option A. So option C is the best Happy to help If you learnt anything from my post, Press KUDOSAfter all, KUDOS is a great way to encourage the complete community.
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Manager
Status: Dedicates 2013 to MBA !!
Joined: 06 Jul 2012
Posts: 55
Location: United States (MI)
Concentration: General Management, Finance
Schools: HBS '16, Stanford '16, Kellogg 1YR '16, Booth '16, Sloan '16, Ross '16, Haas '16, Stern '16, Fuqua, Darden '16, McCombs '15, Tepper '16
GPA: 3.8
WE: Consulting (Computer Software)
Followers: 1
Kudos [?]:
6
[0], given: 11
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
19 Feb 2013, 10:23
IMO - C Conclusion - City’s finances on the whole will not be negatively affected. The only option that undermines is - The city council’s budget, which will be unbalanced after receiving no revenue from transit fares for three months. Thanks and Regards, Charu
_________________
Thanks and Regards, Charu Kapoor
Never Never Never GIVE UP !! Consider KUDOS in case I was able to help you.
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Director
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 937
Location: India
GMAT Date: 05-29-2013
GPA: 3.2
WE: Engineering (Transportation)
Followers: 13
Kudos [?]:
90
[0], given: 57
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]
20 Feb 2013, 01:35
I have posted the OA...
Consider Kudos If my post helps!!!!
Archit
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Re: Due to a sharp rise in the price of gasoline, commuters who
[#permalink]
20 Feb 2013, 01:35
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