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# A billboard company executive recently announced an increase in its

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Intern
Joined: 07 Dec 2016
Posts: 38
A billboard company executive recently announced an increase in its  [#permalink]

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12 Apr 2017, 02:53
6
6
00:00

Difficulty:

45% (medium)

Question Stats:

69% (01:56) correct 31% (02:26) wrong based on 330 sessions

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A billboard company executive recently announced an increase in its billboard rental rates by 5 to 10 percent next year over rates this year and expects other billboard companies to follow suit. The executive argued that despite this increase, advertisers will continue to profit from billboard advertising, and so billboard rentals will be no harder to secure than this year.

Which one of the following, if true, would most support the billboard company's executive's argument?

a) The number of billboards leased by providers of services is increasing, while the number of billboards leased by products is decreasing.
b) Most costs of production and distribution of services typically advertised on billboards are expected to rise 2 to 5 percent in the next year.
c) Next year billboard leases will no longer be available for periods shorter than nine months.
d) A recent survey has shown that the average number of people commuting in their own cars along routes with billboards is increasing at the rate of 2 percent every three months
e) The method of estimating the traffic passing a particular billboard will change next year.

Source: McGraw Hill LSAT

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Joined: 01 Mar 2017
Posts: 117
Re: A billboard company executive recently announced an increase in its  [#permalink]

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10 May 2018, 03:12
1

This is a question in which using the answers to eliminate is called for, since it is not quite clear just from reading what we are looking for.

a) The number of billboards leased by providers of services is increasing, while the number of billboards leased by products is decreasing. irrelevant - we care about the total amount of customers for ads, not their makeup
b) Most costs of production and distribution of services typically advertised on billboards are expected to rise 2 to 5 percent in the next year. no, this weakens the argument - it means customers will have less money to spend on ads
c) Next year billboard leases will no longer be available for periods shorter than nine months.irrelevant or weakens- no reason to think this will help business
d) A recent survey has shown that the average number of people commuting in their own cars along routes with billboards is increasing at the rate of 2 percent every three months This strengthens the case that billboard advertising will be profitable, and thus customers will use it even though it is more expensive
e) The method of estimating the traffic passing a particular billboard will change next year. doesn't strengthen, just adds confusion
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Intern
Joined: 15 Jul 2016
Posts: 36
Location: India
Concentration: Operations, Marketing
Schools: IIMC
GMAT 1: 560 Q46 V21
GMAT 2: 620 Q48 V26
GPA: 4
WE: Operations (Manufacturing)
Re: A billboard company executive recently announced an increase in its  [#permalink]

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17 Aug 2018, 06:44
Some one can explain me the conclusion- " so billboard rentals will be no harder to secure than this year "
I bit confused with " no harder to secure"
i.e. easy to get by advertiser or it will fetch a good amount of money for the billboard company.

But options are clear and D win the race for sure....
Board of Directors
Joined: 01 Sep 2010
Posts: 3422
Re: A billboard company executive recently announced an increase in its  [#permalink]

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17 Aug 2018, 06:49
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The profits will at least the same.

Tha's the meaning of "no harder to secure".

Regards
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Re: A billboard company executive recently announced an increase in its   [#permalink] 17 Aug 2018, 06:49
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