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

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Status: Final Lap Up!!!
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Joined: 21 Sep 2012
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Kudos [?]: 263 [0], given: 67

Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 19 Feb 2013, 04:59
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A
B
C
D
E

Difficulty:

  55% (hard)

Question Stats:

59% (02:11) correct 41% (01:19) wrong based on 56 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.
[Reveal] Spoiler: OA

Last edited by Archit143 on 20 Feb 2013, 00:35, edited 1 time in total.
VP
VP
avatar
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: 31

Kudos [?]: 263 [0], given: 67

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 19 Feb 2013, 05:01
I feel that A should be answer....

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] New post 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
VP
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Status: Final Lap Up!!!
Affiliations: NYK Line
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Location: India
GMAT 1: 410 Q35 V11
GMAT 2: 530 Q44 V20
GMAT 3: 630 Q45 V31
GPA: 3.84
WE: Engineering (Transportation)
Followers: 31

Kudos [?]: 263 [0], given: 67

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 19 Feb 2013, 07:17
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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Kudos [?]: 12 [0], given: 28

Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 19 Feb 2013, 07:42
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 transportation
What is the scope of A local chain of service stations in option A.
So option C is the best

Happy to help

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After all, KUDOS is a great way to encourage the complete community. :-D
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink] New post 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
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Thanks and Regards,
Charu Kapoor

Never Never Never GIVE UP !!
Consider KUDOS in case I was able to help you.

VP
VP
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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: 31

Kudos [?]: 263 [0], given: 67

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