Due to a sharp rise in the price of gasoline, commuters who : GMAT Critical Reasoning (CR)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 19 Jan 2017, 19:56

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Due to a sharp rise in the price of gasoline, commuters who

Author Message
TAGS:

### Hide Tags

VP
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1096
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 37

Kudos [?]: 527 [0], given: 70

Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 04:59
00:00

Difficulty:

45% (medium)

Question Stats:

60% (02:07) correct 40% (01:11) wrong based on 100 sessions

### HideShow timer Statistics

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.
[Reveal] Spoiler: OA

Last edited by Archit143 on 20 Feb 2013, 00:35, edited 1 time in total.
If you have any questions
New!
VP
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1096
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 37

Kudos [?]: 527 [0], given: 70

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 05:01
I feel that A should be answer....

Consider Kudos If my post helps

Archit
Manager
Joined: 22 Jan 2013
Posts: 62
Followers: 0

Kudos [?]: 27 [0], given: 28

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 06:56
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
VP
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1096
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 37

Kudos [?]: 527 [0], given: 70

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 07:17
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
Manager
Joined: 22 Jan 2013
Posts: 62
Followers: 0

Kudos [?]: 27 [0], given: 28

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 07:42
Archit143 wrote:
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 transportation
What 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 KUDOS
After all, KUDOS is a great way to encourage the complete community.
Manager
Status: Dedicates 2013 to MBA !!
Joined: 06 Jul 2012
Posts: 56
Location: United States (MI)
Concentration: Entrepreneurship, General Management
GPA: 3.8
WE: Information Technology (Consulting)
Followers: 10

Kudos [?]: 153 [0], given: 14

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

19 Feb 2013, 09:23
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 !!

VP
Status: Final Lap Up!!!
Affiliations: NYK Line
Joined: 21 Sep 2012
Posts: 1096
Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 37

Kudos [?]: 527 [0], given: 70

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

### Show Tags

20 Feb 2013, 00:35
I have posted the OA...

Consider Kudos If my post helps!!!!

Archit
Re: Due to a sharp rise in the price of gasoline, commuters who   [#permalink] 20 Feb 2013, 00:35
Similar topics Replies Last post
Similar
Topics:
Due to a sharp rise in the price of gasoline, commuters who 2 16 Feb 2012, 18:03
1 Due to a sharp rise in the price of gasoline, commuters who 6 04 Dec 2011, 18:38
1 Due to a sharp rise in the price of gasoline, commuters who 14 02 Sep 2011, 04:57
3 Due to a sharp rise in the price of gasoline, commuters who 16 16 Aug 2010, 12:55
11 Due to a sharp rise in the price of gasoline, commuters who 33 22 May 2010, 02:23
Display posts from previous: Sort by