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12 Days of Christmas GMAT Competition - Day 9: A city government plans

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Bunuel

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12 Days of Christmas 2024 - 2025 Competition with $40,000 of Prizes

A city government plans to remove the free parking spaces in downtown areas to encourage the use of public transportation. If this change is implemented, drivers who currently park downtown for free would have to pay for parking. Consequently, many downtown businesses are concerned that their customer traffic would decrease significantly, leading to reduced sales.

The argument above assumes which of the following?

A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
E. The city should provide additional public transportation options to compensate for the removal of free parking spaces.

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Bunuel

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Bunuel

12 Days of Christmas 2024 - 2025 Competition with $30,000 of Prizes

A city government plans to remove the free parking spaces in downtown areas to encourage the use of public transportation. If this change is implemented, drivers who currently park downtown for free would have to pay for parking. Consequently, many downtown businesses are concerned that their customer traffic would decrease significantly, leading to reduced sales.

The argument above assumes which of the following?

A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
E. The city should provide additional public transportation options to compensate for the removal of free parking spaces.

GMAT Club's Official Explanation:

(A) Incorrect. We do not know about other incentives or what this statement refers to. Other incentives may or may not be insufficient to keep the same number of people visiting. However, this statement is irrelevant and outside of the scope. Eliminate.

(B) Incorrect. This answer suggests that all revenue for downtown businesses comes from drivers, but this statement tells us nothing about the likelihood of drivers driving if they have to pay for parking. Without this additional detail, we can deny this assumption, and the argument would still stand. This is a partial assumption only. In contrast, the correct answer/assumption would say that downtown businesses depend solely on the customers who drive and those customers will not be driving if they have to pay for parking because if the businesses depend on customers who drive and those customers continue driving, then there is no problem. Also, it is likely too extreme of an assumption/statement as people traveling by bus or foot may also be shopping.

(C) Incorrect. Knowing the reason for the parking fee is not relevant to the concerns of the downtown businesses. Irrelevant. Eliminate.

(D) Correct Answer: This is the correct assumption because the argument depends on the behavior change of customers who would have to start paying for parking; if this change doesn't reduce their visits, the businesses wouldn't necessarily see reduced traffic. This passes the negation test as the assumption the argument depends on. Notice in contrast to (B), this answer choice addresses both aspects: 1) many customers are drivers and 2) Customers/drivers are less likely to visit if they have to pay for parking.

(E) Incorrect. This answer choice introduces a potential solution rather than an assumption and thus is an incorrect assumption/answer. Eliminate.

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(A) Too broad, goes beyond necessary assumption. - Incorrect

(B) Too extreme, argument doesn't need total dependence. - Incorrect

(C) Revenue motive irrelevant to argument. - Incorrect

(D) The argument assumes that having to pay for parking will deter customers who currently use free parking. Without this assumption, the link between paid parking and decreased traffic breaks down. - Correct

(E) Policy suggestion, not an assumption. - Incorrect

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Let's approach this Identify the Assumption question step-by-step:

1. First, let's break down the argument:

* Premise: The city plans to remove free parking spaces downtown to encourage public transportation use.

* Premise: Drivers who currently park for free would have to pay for parking.

* Conclusion: Many downtown businesses are concerned that their customer traffic would decrease significantly, leading to reduced sales.

2. We need to identify what assumption is necessary for this conclusion to be valid.

3. Let's evaluate each option:

A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
* This is a strong contender. It assumes that without free parking, other factors won't be enough to maintain customer traffic.

B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
* This is too extreme. The argument doesn't assume that businesses depend "solely" on drivers, just that a significant portion of customers drive.

C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
* This contradicts the given information, which states the reason is to encourage public transportation use.

D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
* This is the core assumption of the argument. It directly links the removal of free parking to decreased customer traffic.

E. The city should provide additional public transportation options to compensate for the removal of free parking spaces.
* This is a suggestion, not an assumption required for the argument to be valid.

The correct answer is D. The argument assumes that customers who currently use free parking are likely to visit downtown businesses less often if they have to pay for parking. This assumption is necessary for the businesses' concern about decreased customer traffic to be valid.
While A is also a strong contender, D more directly addresses the link between paying for parking and reduced visits, which is central to the businesses concern

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The key assumption is option D - that paying for parking would reduce customer visits.

This is the critical logical link between:
Premise: Free parking → paid parking
Conclusion: Customer traffic/sales will decrease

The argument assumes customers will visit less if they must pay to park. Without this assumption, the businesses' concern about reduced traffic doesn't follow logically.

Other options:
A: Too broad - not necessarily assumed
B: Overstates - assumes ALL customers drive
C: Irrelevant to business impact
E: About solutions, not an assumption

Answer: D

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The argument suggests that removing free parking will lead to fewer customers visiting downtown businesses, reducing sales. For this to be true, it must assume a connection between parking costs and customer behavior.
Evaluating each option:
(A) Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.

This suggests that no other factors will offset the loss of free parking, but it’s not directly required for the argument to hold.
Not the best choice.

(B) Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.

The argument does not assume this extreme dependency; it only requires that some customers will be deterred.
Too strong.

The argument does not discuss the city’s motivation for removing free parking.
Irrelevant.

(D) Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.

This directly supports the link between removing free parking and reduced customer traffic, which is essential for the argument.
Correct assumption.

(E) The city should provide additional public transportation options to compensate for the removal of free parking spaces.

This is a suggestion, not an assumption required for the argument to hold.
Irrelevant.

Correct Answer: (D)

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Bunuel

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(A) Out of scope, can't be inferred from the passage.
(B) solely is a strong word, while it may be a factor, it doesn't solely depend on it
(C) No its to encourage use of public transport
(D) This is the implicit assumption being made, if the customer park their car they are more likely to explore the downtown businesses too
(E) City already having public transportation which isn't being utilised in first place.

Hence (D)

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D states that customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
This is the assumption that connects the removal of free parking to reduced customer traffic and, consequently, to reduced sales.
Without this assumption, the concern of downtown businesses would not make sense.
Why the Other Options Are Incorrect:
A. While other incentives or conveniences might affect customer behavior, the argument does not rely on them. It focuses specifically on the impact of paid parking.

B. The argument does not claim that downtown businesses depend solely on customers who drive and park downtown. It only highlights that these customers are significant enough to raise concerns.

C. The argument does not address the reason for removing free parking (e.g., revenue generation). It focuses on the effect on businesses.

E. The argument does not assume that additional public transportation options are necessary. It is about the potential deterrent effect of paid parking on current customers.

Ans D

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P: remove the free parking spaces.
C: customer traffic would decrease significantly. WHY?

Prethink:
customers will come less often because they have to pay for parking?

With this thought only two options remain:
B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
INCORRECT. why?
solely is too strong of a word, if we negate it, i.e. not dependent solely --> still might be dependent significantly.
my argument does not break

D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
This is perfect

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D) This is the correct assumption. Negate: If having to pay for parking doesnt make those who currently use free parking less likely to visit downtown businesses often then the conclusion doesnt hold.
A) We have no information about other incentives. Also, this is not a must be true. Even if other incentives are sufficient to keep the same number of customers visiting, it could still be that those who had free parking are less likely to visit. We dont know.
B) "solely" is not a must be true. They form one portion of the customers leading to some portion of the sales, they need not be sole customers driving majority sales
C) We are not concerned with the intent behind removing free parking. Also this is incorrect, goal is clearly mentioned as to encourage public transport use.
E) This is a recommendation on what should be done, and not an assumption for the conclusion to hold true

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The key to answering this question is to identify the assumption underlying the concern expressed by downtown businesses: that the removal of free parking will lead to fewer customers, causing reduced sales.

---

Analyzing the Argument

Plan: Remove free parking to encourage public transportation use.

Concern: Downtown businesses fear decreased customer traffic and reduced sales.

Assumption: There is a connection between removing free parking and a reduction in customer visits.

---

Answer Choice Analysis

(A) Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
This choice is tempting but unnecessary. The argument doesn't assume that other incentives are completely insufficient; it focuses on the impact of removing free parking. While this could strengthen the argument, it is not directly assumed.
Eliminate A.

(B) Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
This is too extreme. The argument does not assume that downtown businesses depend solely on these customers; it just assumes that these customers are significant enough that their absence would hurt sales.
Eliminate B.

(C) The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
The city’s motivation for removing free parking (revenue generation) is irrelevant to the businesses' concern about decreased customer traffic.
Eliminate C.

(D) Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
This is the assumption the argument relies on. If customers who use free parking are not deterred by paid parking, then there would be no significant decrease in customer traffic or sales. For the concern to hold, the argument must assume that these customers would visit less often if free parking were removed.
Keep D.

(E) The city should provide additional public transportation options to compensate for the removal of free parking spaces.
This might be a recommendation but is not an assumption. The argument is not concerned with solutions to the problem; it focuses on the impact of removing free parking.
Eliminate E.

---

Correct Answer: D

The argument assumes that customers who currently use the free parking would visit downtown businesses less often if they had to pay for parking. Without this assumption, the businesses' concern would not be valid.

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The answer is option D.

We need to find why the downtown business would go down in sales, if there are not people driving and parking in the downtown.

A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses. --> Our argument is not talking about other incentives. so eliminate.

B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales. --> There is an extreme word solely, so we are not sure if the business are solely dependent on the drivers who park their cars in the downtown.

C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces. --> It could be, but we need to find why the sales would go down for the business in downtown.

D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking. -->Doesn't have any extreme words, and says that they wouldn't visit the shops often if they don't find parking. So we have the answer.

E. The city should provide additional public transportation options to compensate for the removal of free parking spaces. -> Not relating to our conclusion. Eliminate

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Conclusion- downtown businesses are concerned that their customer traffic would decrease significantly, leading to reduced sales
Support- drivers who currently park downtown for free would have to pay for parking

Assumption - Possibly something like> Major share drivers who park free and they won't come if parking fees.
check option
A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
Negation- Other incentives or conveniences are sufficient to keep the same number of customers visiting downtown businesses> This breaks conclusion if other incentive would be offered... so conditional , keep and look for better choice

B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
Negation- Downtown businesses does not depend solely on customers who drive and park downtown for the majority of their sales> No breakup if park free or others > incorrect

C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
Negation- The primary reason for removing free parking is not to generate additional revenue from paid parking spaces- Irrelevant

D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
Negation- Customers who currently use the free parking are not likely to visit downtown businesses less often if they have to pay for parking.> This means evidence break> as it will not have any impact hence break conclusion. Correct

E. The city should provide additional public transportation options to compensate for the removal of free parking spaces.
Negation- The city should not provide additional public transportation options to compensate for the removal of free parking spaces.> No impact on conclusion

Ans D

Bunuel

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Question Type: Assumption
This is an assumption question, so we are looking for a statement that must be true for the argument to hold.

The Argument
City Plan: Remove free parking in downtown areas to encourage public transportation.
Concern: Downtown businesses fear that the removal of free parking will decrease customer traffic, reducing sales.

Key Assumption
The argument assumes a causal relationship between the removal of free parking and a reduction in customer traffic. For this to hold, it must be true that customers who currently use free parking would visit downtown businesses less often if parking is no longer free.

Answer Choices Analysis
(A) Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
This may support the concern indirectly, but it is not necessarily required for the argument. For the argument to work, it does not have to assume anything about other incentives or conveniences; it only focuses on the impact of removing free parking.
Eliminate.

(B) Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
The argument does not depend on "sole dependence" on parking-related customers. It is sufficient that some customers (not necessarily a majority) are affected by the change.
Eliminate.

(C) The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
The reason for the city's plan is irrelevant to the argument. The concern is about how this change will affect customer behavior, not the city's motivations.
Eliminate.

(D) Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
This directly states the assumption behind the concern. If customers are not discouraged by paid parking, there would be no reason for businesses to fear reduced customer traffic or sales.
Keep.

(E) The city should provide additional public transportation options to compensate for the removal of free parking spaces.
This is a suggestion for how the city could address the situation, but it is not an assumption the argument depends on.
Eliminate.

Correct Answer: (D)

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Bunuel

This question was provided by GMAT Club
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(A) Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.
This suggests that no other factors (e.g., shopping experience, product availability) would compensate for the loss of free parking, and it seems to be implied by the argument. If this were false, customers might still visit businesses despite the removal of free parking, which would weaken the concern about reduced sales. This is a plausible assumption.
(B) Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.
This would imply that businesses rely only on drivers who park downtown, which is a very strong and specific assumption. The argument doesn't directly claim this but assumes that the removal of free parking will significantly impact the customer base, suggesting a reliance on drivers but not necessarily exclusively on them. This is too strong an assumption.
(C) The primary reason for removing free parking is to generate additional revenue from paid parking spaces.
While this may be true, the argument is concerned with the impact on business sales, not the city’s primary motivation for removing parking. Therefore, this doesn’t address the core assumption in the argument about customer behavior. This is not relevant.
(D) Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.
This directly addresses the assumption behind the argument. The concern of businesses is that the removal of free parking will discourage current customers from visiting, and this choice articulates that assumption. This is the most direct assumption in the argument.
(E) The city should provide additional public transportation options to compensate for the removal of free parking spaces.
While providing more transportation options might be a possible solution, the argument does not assume that the city should do this. The focus is on the impact of paid parking, not the city’s response to it. This is not an assumption made by the argument.

IMO D

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Bunuel

This question was provided by GMAT Club
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We are bothered about the impact of parking fee on the sales of the downtown shops. Lets do the POE:

A: Other incentives aren't the argument's focus. Eliminate.
B: Businesses don’t depend solely on drivers. Eliminate.
C: Revenue motive isn’t assumed. Eliminate.
D: Reduced visits due to paid parking directly supports the argument. Keep.
E: Suggesting public transport isn’t part of the assumption. Eliminate.

If we negate D, The conclusion will be shattered. Hence D isthe best option. IMO D

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The correct answer is D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.

This option is the underlying assumption of the argument. The city government is removing free parking to encourage the use of public transportation, and the businesses are concerned that this will lead to a decrease in customer traffic and sales. The assumption is that customers who currently use the free parking will be less likely to visit the businesses if they have to pay for parking, which would reduce sales.

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D

Many downtown businesses are concerned that, if customers are forced to pay for parking, it will lead to a decrease in customer traffic and, consequently, a drop in sales.

Option A: Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses.

Analysis: This option suggests that no other measures (such as discounts, promotions, or additional services) could compensate for the loss of free parking. The argument doesn’t mention other incentives or their sufficiency. Instead, it focuses on the direct impact of paying for parking on customer behavior. This is an assumption, but not the central one in the argument.
Conclusion: This option is not the correct assumption because the argument does not discuss other incentives.

Option B: Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales.

Analysis: This option suggests that businesses rely exclusively on customers who park downtown, but the argument does not imply that these businesses depend solely on drivers who park for free. The concern is about customer traffic decreasing due to parking fees, not that these businesses rely only on drivers.
Conclusion: This option is an overstatement and not the central assumption.

Option C: The primary reason for removing free parking is to generate additional revenue from paid parking spaces.

Analysis: While this might be a reason for the policy change, it’s not an assumption underlying the businesses’ concern. The businesses are concerned about the impact on customer traffic and sales, not the motivations of the government behind the policy.
Conclusion: This option is irrelevant to the assumption needed to support the argument about business concerns.

Option D: Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.

Analysis: This is the core assumption behind the argument. The businesses are concerned that if parking becomes paid, it will reduce the number of customers who visit them. This implies that customers are sensitive to parking costs, which is the premise the argument rests on.
Conclusion: This is the correct assumption, as it directly supports the businesses' concern about reduced traffic and sales.

Option E: The city should provide additional public transportation options to compensate for the removal of free parking spaces.

Analysis: While this could be a possible solution to mitigate the impact on businesses, it is not an assumption in the argument. The argument focuses on the concern of reduced customer traffic due to paid parking, not on whether the city should offer more transportation options.
Conclusion: This option is not the correct assumption, as it suggests a remedy, not an underlying assumption

Final Answer:
The correct assumption is D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking.

Bunuel

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Yaswanth9696

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26 Dec 2024, 11:14

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We need to find which of the following the argument assumes, The argument is Due to introduction of the paid parking plan, their customer traffic would decrease significantly, leading to reduced sales.

A. Other incentives or conveniences are insufficient to keep the same number of customers visiting downtown businesses. Nothing mentioned about incentives.
B. Downtown businesses depend solely on customers who drive and park downtown for the majority of their sales. Not exactly, the argument/passage doesn't mention that.
C. The primary reason for removing free parking is to generate additional revenue from paid parking spaces. Irrelevant
D. Customers who currently use the free parking are likely to visit downtown businesses less often if they have to pay for parking. This makes sense, People who were using free parking they now may visit businesses less often. This is assumption.
E. The city should provide additional public transportation options to compensate for the removal of free parking spaces. Irrelevant

D is the answer.

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A. This might be relevant if the argument is compared different factors influencing customer decisions. However the focus is on impact of removing free parking. INCORRECT

B. Argument isn't concerned whether the downtown businesses exclusively depend on customers who drive and park downtown, it only requires that losing such customers will significantly impact sales. INCORRECT

C. The argument focuses more on consequences, than on motivations of policy change. INCORRECT

D. If we negate this statement then the customers are as likely to visit downtown businesses as before, then there won't be a significant impact on sales. This is the key assumption required. CORRECT

E. This is a suggestion, irrelevant. INCORRECT

Answer D.

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