Find all School-related info fast with the new School-Specific MBA Forum

It is currently 20 Nov 2014, 15:00

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

The cost of transatlantic airfare has nearly doubled over

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 26 Sep 2009
Posts: 22
Followers: 0

Kudos [?]: 12 [0], given: 3

The cost of transatlantic airfare has nearly doubled over [#permalink] New post 10 Dec 2009, 10:32
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

60% (03:15) correct 40% (01:16) wrong based on 10 sessions
The cost of transatlantic airfare has nearly doubled over the past five years, yet airlines are doing a booming business. Clearly, people today have more money to spend on vacations than they did five years ago.

All of the following, if true, would weaken the argument above EXCEPT:

1) Most people buying transatlantic tickets today use them for business trips, so airfare is refunded by their companies.

2) There are fewer airlines in existence today than five years ago.

3) People are taking shorter vacations and staying in cheaper hotels than they used to.

4) Crossing the Atlantic by ship requires more time than most people can afford.

5) Domestic airline flights have seen a steady increase in passengers
1 KUDOS received
Senior Manager
Senior Manager
User avatar
Affiliations: PMP
Joined: 13 Oct 2009
Posts: 313
Followers: 3

Kudos [?]: 103 [1] , given: 37

Re: The cost of transatlantic airfare [#permalink] New post 10 Dec 2009, 11:27
1
This post received
KUDOS
is it E, E suggests that people re spending in domestic flights too , meaning ppl have more money, strengthening the argument...
_________________

Thanks, Sri
-------------------------------
keep uppp...ing the tempo...

Press +1 Kudos, if you think my post gave u a tiny tip

Manager
Manager
avatar
Joined: 13 Nov 2009
Posts: 64
Schools: Columbia(RD-ding w/o int),
Followers: 1

Kudos [?]: 6 [0], given: 0

Re: The cost of transatlantic airfare [#permalink] New post 10 Dec 2009, 12:37
agree with E.
Manager
Manager
avatar
Joined: 02 Nov 2009
Posts: 70
Schools: INSEAD- WL, IE - Apr 2011
Followers: 1

Kudos [?]: 12 [0], given: 1

Re: The cost of transatlantic airfare [#permalink] New post 10 Dec 2009, 13:14
what's wrong with C? Since people have 'more money', which can come from spending less on the hotels and reducing the length of vacations.
Intern
Intern
avatar
Joined: 07 Dec 2009
Posts: 43
Followers: 0

Kudos [?]: 3 [0], given: 3

Re: The cost of transatlantic airfare [#permalink] New post 10 Dec 2009, 17:49
i narrowed down to B and D.
i.e 2) There are fewer airlines in existence today than five years ago.

I think B is the correct becuase -
1. Demand supply. If the number of airlines are less, the demand is high, hence people fly irrespective of the prices.

Why i thought D is correct ?
4) Crossing the Atlantic by ship requires more time than most people can afford.

Since travelling via ship is time consuming, people prefer to fly, irrespective of fare, which takes less time. But since this choice does not talk about airlines, i did not choose it.

Problem with E -
5) Domestic airline flights have seen a steady increase in passengers

This talks about domestic airlines. There is no relation between domestic and transatlantic flights.



Thoughts ?
Manager
Manager
User avatar
Joined: 28 Jul 2009
Posts: 156
Followers: 3

Kudos [?]: 47 [0], given: 4

Re: The cost of transatlantic airfare [#permalink] New post 11 Dec 2009, 02:13
The evidences are provided about transatlantic flights. Then conclusion is about people in general. Information about domestic flight suplement that about transatlantic, and therefore makes conclusion more robust.

I think the ans is E.


ms wrote:
i narrowed down to B and D.
i.e 2) There are fewer airlines in existence today than five years ago.

I think B is the correct becuase -
1. Demand supply. If the number of airlines are less, the demand is high, hence people fly irrespective of the prices.

Why i thought D is correct ?
4) Crossing the Atlantic by ship requires more time than most people can afford.

Since travelling via ship is time consuming, people prefer to fly, irrespective of fare, which takes less time. But since this choice does not talk about airlines, i did not choose it.

Problem with E -
5) Domestic airline flights have seen a steady increase in passengers

This talks about domestic airlines. There is no relation between domestic and transatlantic flights.



Thoughts ?
Manager
Manager
avatar
Joined: 23 Oct 2009
Posts: 84
Location: New Delhi, India
Schools: Chicago Booth, Harvard, LBS, INSEAD, Columbia
Followers: 5

Kudos [?]: 13 [0], given: 76

Re: The cost of transatlantic airfare [#permalink] New post 11 Dec 2009, 03:13
I think the answer is E.
I did a very similar question today in PR's Verbal Bin3.

A. The reason why airlines are doing well is because of an alternative cause ie. companies refunding their money, not because of the travelers having enough money.
B. If the reason people are spending on flight tickets is because they have no other option (limited no. of choices, and increased costs by all airlines), it does not support the given reason of people spending money just because they have it, but because they don't have an option. Given the option, they probably wouldn't spend so much on it. I hope this makes sense!?
C. If people are finding ways to save money through shorter vacations & cheaper hotels, they probably do not have "more money to spend on vacations than they did five years ago". This also weakens the argument.
D. Again, the reason people opt for the quicker, yet more expensive mode of transport (flights) is because the alternative is too time-consuming, NOT because they have more money to spend.
E. How an airline would do depends on income from 2 segments: international (in this case, transatlantic) and domestic. If intl. flights just got more expensive, using the simple supply-demand theory, demand should go down. However, if the domestic airline segment has seen an increase in passengers, it means that the business from domestic segment could be so large that overall, airline companies are doing better. Why are the number of domestic passengers increasing? Because people are now taking vacations to locations within the country? But how does that imply that they have more money? Is this the right answer just because it does NOT weaken the argument?

So I started off assuming E was right...but, when I really started to question it, I ended up eliminating all the options?! Oh man...help!!!

Btw, what's the OA???
_________________

Read about my GMAT prep at http://gmatting.blogspot.com/
1st Feb '11 -- Actual GMAT : 730 (Q48 V42) AWA 6.0

My Practice GMAT Scores
29th Jan '11 -- GMATPrep#2 : 700 (Q47 V38)
23rd Jan '11 -- MGMAT Practice Test #3 : 670 (Q45 V36)
19th Jan '11 -- GMATPrep#1 v.1 : 710 (Q49 V37)
15th Jan '11 -- GMATPrep#1 : 720 (Q47 V42)
11th Jan '11 -- MGMAT Practice Test #2 : 740 (Q47 V44)
6th Jan '11 -- Kaplan#2 : 620 (Q40 V35)
28th Dec '10 -- PowerPrep#1 : 670 (Q47 V35)
30th Oct '10 -- MGMAT Practice Test #1 : 660 (Q45 V35)
12th Sept '10 -- Kaplan Free Test : 610 (Q39 V37)
6th Dec '09 -- PR CAT #1 : 650 (Q44 V37)
25th Oct '09 -- GMATPrep#1 : 620 (Q44 V34)

If you feel like you're under control, you're just not going fast enough.
A goal without a plan is just a wish.
You can go higher, you can go deeper, there are no boundaries above or beneath you.

Intern
Intern
avatar
Joined: 07 Dec 2009
Posts: 43
Followers: 0

Kudos [?]: 3 [0], given: 3

Re: The cost of transatlantic airfare [#permalink] New post 11 Dec 2009, 16:55
Here is how i approached the question -
What is the conclusion ?

Answer - The airlines are doing a booming business

Now, let me share my thoughts on the various choices -

1) Most people buying transatlantic tickets today use them for business trips, so airfare is refunded by their companies.
Since the airline is really not doing a lot(or booming) of business becuase the tickets are being refunded, hence i would say that this is weakening the conclusion

2) There are fewer airlines in existence today than five years ago.
Since there are few airlines and people have money to fly inspite of rising price, the airlines, whaterver number they are, are booming in the business. This strengthen's the conclusion.

3) People are taking shorter vacations and staying in cheaper hotels than they used to.
this does not affect the conclusion becuase we do not know whether people are flying or driving, hence no impact to the conclusion

4) Crossing the Atlantic by ship requires more time than most people can afford.
This shows that people have more time which the can afford to spend. Nothing shows that they fly, thus helping the airline to boom. However, this does not show that people have more they, it just shows that they have more time.

5) Domestic airline flights have seen a steady increase in passengers
This says that the dommestic airlines have a steady increase in passenger that might cause a boom in dommestic airline industry. But the conclusion talks about airline industry on the whole not specific to dommestic or international. Hence this "might" strengthen the conclusion if there is an increase in both dommestic and international airline industry, resulting in a boom in overall airline industry. But since we do not know about this fact, i would say this "might" strengthen the conclusion but not to a very strong extent.

Considering all the above facts, i would say B is the correct answer.

Thoughts ??

What is the OA ?
Manager
Manager
avatar
Joined: 23 Oct 2009
Posts: 84
Location: New Delhi, India
Schools: Chicago Booth, Harvard, LBS, INSEAD, Columbia
Followers: 5

Kudos [?]: 13 [0], given: 76

Re: The cost of transatlantic airfare [#permalink] New post 11 Dec 2009, 21:43
ms, i guess i made a mistake in identifying the conclusion. I think i've reasoned taking the premises as the conclusion?
We seriously need the OA as well as the official explanation for the answer! What is the source of this question?
_________________

Read about my GMAT prep at http://gmatting.blogspot.com/
1st Feb '11 -- Actual GMAT : 730 (Q48 V42) AWA 6.0

My Practice GMAT Scores
29th Jan '11 -- GMATPrep#2 : 700 (Q47 V38)
23rd Jan '11 -- MGMAT Practice Test #3 : 670 (Q45 V36)
19th Jan '11 -- GMATPrep#1 v.1 : 710 (Q49 V37)
15th Jan '11 -- GMATPrep#1 : 720 (Q47 V42)
11th Jan '11 -- MGMAT Practice Test #2 : 740 (Q47 V44)
6th Jan '11 -- Kaplan#2 : 620 (Q40 V35)
28th Dec '10 -- PowerPrep#1 : 670 (Q47 V35)
30th Oct '10 -- MGMAT Practice Test #1 : 660 (Q45 V35)
12th Sept '10 -- Kaplan Free Test : 610 (Q39 V37)
6th Dec '09 -- PR CAT #1 : 650 (Q44 V37)
25th Oct '09 -- GMATPrep#1 : 620 (Q44 V34)

If you feel like you're under control, you're just not going fast enough.
A goal without a plan is just a wish.
You can go higher, you can go deeper, there are no boundaries above or beneath you.

Intern
Intern
avatar
Joined: 26 Sep 2009
Posts: 22
Followers: 0

Kudos [?]: 12 [0], given: 3

Re: The cost of transatlantic airfare [#permalink] New post 11 Dec 2009, 22:10
OA is E..

Source is Kaplan...

I was confused between D And E

But now i am clear why is it E

THanks guys
Manager
Manager
avatar
Joined: 23 Oct 2009
Posts: 84
Location: New Delhi, India
Schools: Chicago Booth, Harvard, LBS, INSEAD, Columbia
Followers: 5

Kudos [?]: 13 [0], given: 76

Re: The cost of transatlantic airfare [#permalink] New post 12 Dec 2009, 00:53
what's the explanation in kaplan???
_________________

Read about my GMAT prep at http://gmatting.blogspot.com/
1st Feb '11 -- Actual GMAT : 730 (Q48 V42) AWA 6.0

My Practice GMAT Scores
29th Jan '11 -- GMATPrep#2 : 700 (Q47 V38)
23rd Jan '11 -- MGMAT Practice Test #3 : 670 (Q45 V36)
19th Jan '11 -- GMATPrep#1 v.1 : 710 (Q49 V37)
15th Jan '11 -- GMATPrep#1 : 720 (Q47 V42)
11th Jan '11 -- MGMAT Practice Test #2 : 740 (Q47 V44)
6th Jan '11 -- Kaplan#2 : 620 (Q40 V35)
28th Dec '10 -- PowerPrep#1 : 670 (Q47 V35)
30th Oct '10 -- MGMAT Practice Test #1 : 660 (Q45 V35)
12th Sept '10 -- Kaplan Free Test : 610 (Q39 V37)
6th Dec '09 -- PR CAT #1 : 650 (Q44 V37)
25th Oct '09 -- GMATPrep#1 : 620 (Q44 V34)

If you feel like you're under control, you're just not going fast enough.
A goal without a plan is just a wish.
You can go higher, you can go deeper, there are no boundaries above or beneath you.

Senior Manager
Senior Manager
avatar
Joined: 02 Aug 2009
Posts: 269
Followers: 3

Kudos [?]: 86 [0], given: 1

Re: The cost of transatlantic airfare [#permalink] New post 12 Dec 2009, 06:07
hi.. the conclusion is very clear ..it is " Clearly, people today have more money to spend on vacations than they did five years ago." ....E
Manager
Manager
avatar
Joined: 28 Sep 2009
Posts: 62
Followers: 1

Kudos [?]: 18 [0], given: 2

Re: The cost of transatlantic airfare [#permalink] New post 17 Dec 2009, 12:22
hsourabh wrote:
what's wrong with C? Since people have 'more money', which can come from spending less on the hotels and reducing the length of vacations.


The cost of transatlantic airfare has nearly doubled over the past five years, yet airlines are doing a booming business. Clearly, people today have more money to spend on vacations than they did five years ago.
All of the following, if true, would weaken the argument above EXCEPT:
3) People are taking shorter vacations and staying in cheaper hotels than they used to.

My ans is E
On the contrary of what you said, ppl take shorter vacations and staying in cheaper hotels than they used to because they are poorer. Here is the cause and effect. ticket price increases--> To take vacation, ppl spend on the plan ticket more than before; in the meantime they take shorter vacation and stay cheaper hotel. It says that ppl are either the same or poorer.

HTH
_________________

I am not born to be a GENIUS nor a GMATTER. If you are struggling, we are in the same boat. Fight to the last!!

Manager
Manager
avatar
Joined: 28 Sep 2009
Posts: 62
Followers: 1

Kudos [?]: 18 [0], given: 2

Re: The cost of transatlantic airfare [#permalink] New post 17 Dec 2009, 12:35
ms wrote:
Here is how i approached the question -
What is the conclusion ?

Answer - The airlines are doing a booming business

Now, let me share my thoughts on the various choices -

1) Most people buying transatlantic tickets today use them for business trips, so airfare is refunded by their companies.
Since the airline is really not doing a lot(or booming) of business becuase the tickets are being refunded, hence i would say that this is weakening the conclusion

2) There are fewer airlines in existence today than five years ago.
Since there are few airlines and people have money to fly inspite of rising price, the airlines, whaterver number they are, are booming in the business. This strengthen's the conclusion.

3) People are taking shorter vacations and staying in cheaper hotels than they used to.
this does not affect the conclusion becuase we do not know whether people are flying or driving, hence no impact to the conclusion

4) Crossing the Atlantic by ship requires more time than most people can afford.
This shows that people have more time which the can afford to spend. Nothing shows that they fly, thus helping the airline to boom. However, this does not show that people have more they, it just shows that they have more time.

5) Domestic airline flights have seen a steady increase in passengers
This says that the dommestic airlines have a steady increase in passenger that might cause a boom in dommestic airline industry. But the conclusion talks about airline industry on the whole not specific to dommestic or international. Hence this "might" strengthen the conclusion if there is an increase in both dommestic and international airline industry, resulting in a boom in overall airline industry. But since we do not know about this fact, i would say this "might" strengthen the conclusion but not to a very strong extent.

Considering all the above facts, i would say B is the correct answer.

Thoughts ??

What is the OA ?


2) There are fewer airlines in existence today than five years ago.
This explains why "airlines are doing a booming business". In other word, because there are fewer airlines, the existing airline do business well; it means booming business is not necessarily because people fly more often but because they are just flying via fewer existing airlines. So, people today do not/not necessarily have more money to spend on vacations than they did five years ago.
_________________

I am not born to be a GENIUS nor a GMATTER. If you are struggling, we are in the same boat. Fight to the last!!

Re: The cost of transatlantic airfare   [#permalink] 17 Dec 2009, 12:35
    Similar topics Author Replies Last post
Similar
Topics:
The cost of transatlantic airfare has nearly doubled over nikhil.jones.s 0 11 Jul 2013, 03:03
2 Experts publish their posts in the topic Since a decade ago, the cost of living has multiplied nearly feruz77 2 25 Oct 2010, 00:42
11 The cost of transatlantic airfare has nearly doubled over spriya 37 06 Sep 2008, 07:05
The cost of transatlantic air fare has nearly doubled over rao 4 13 Aug 2008, 11:19
The cost of transatlantic air fare has nearly doubled over GMATT73 13 19 Jan 2006, 07:11
Display posts from previous: Sort by

The cost of transatlantic airfare has nearly doubled over

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.