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A city councilman has proposed a controversial new plan to increase ci

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A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 08:08
2
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A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

81% (01:47) correct 19% (02:04) wrong based on 62 sessions

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A city councilman has proposed a controversial new plan to increase city revenues from the parking places downtown. He has proposed that instead of charging $1.20 per hour for parking in these spots, the city should make all parking spots five minute loading zones, and then assess $15 parking fines on anyone who parks in the spots for more than five minutes.

Which of the following, if true, provides the strongest argument that the councilman’s plan will not increase the city’s revenue?

A. A system that promotes parking fines will anger citizens, and they will consequently vote the councilman out of office if the plan goes through.

B. The city owns only 14 parking spots in the downtown area.

C. The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.

D. Ray’s parking garage, the only competition for the city-owned parking places downtown, charges $18 per day for its parking places.

E. It has been observed that on an average day, approximately three different cars park in each of the city-owned parking spots downtown.

Source: McGraw-Hill's GMAT (5th)
Difficulty Level: 600

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Re: A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 08:56
IMO C; The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.
here if the costs of assessing and collecting the parking fines > revenue then plan will fail


SajjadAhmad wrote:
A city councilman has proposed a controversial new plan to increase city revenues from the parking places downtown. He has proposed that instead of charging $1.20 per hour for parking in these spots, the city should make all parking spots five minute loading zones, and then assess $15 parking fines on anyone who parks in the spots for more than five minutes.

Which of the following, if true, provides the strongest argument that the councilman’s plan will not increase the city’s revenue?

A. A system that promotes parking fines will anger citizens, and they will consequently vote the councilman out of office if the plan goes through.

B. The city owns only 14 parking spots in the downtown area.

C. The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.

D. Ray’s parking garage, the only competition for the city-owned parking places downtown, charges $18 per day for its parking places.

E. It has been observed that on an average day, approximately three different cars park in each of the city-owned parking spots downtown.

Source: McGraw-Hill's GMAT (5th)

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Re: A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 10:25
SajjadAhmad wrote:
A city councilman has proposed a controversial new plan to increase city revenues from the parking places downtown. He has proposed that instead of charging $1.20 per hour for parking in these spots, the city should make all parking spots five minute loading zones, and then assess $15 parking fines on anyone who parks in the spots for more than five minutes.


Which of the following, if true, provides the strongest argument that the councilman’s plan will not increase the city’s revenue?

A. A system that promotes parking fines will anger citizens, and they will consequently vote the councilman out of office if the plan goes through.

Plan does not need councilman. It can be a success without councilman.

B. The city owns only 14 parking spots in the downtown area.

Strengthener : Less parkings available in someway means less space, and chances are more that people may not move from one parking to another to avoid the fine.

C. The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.

Only this choice weakens the plan.

D. Ray’s parking garage, the only competition for the city-owned parking places downtown, charges $18 per day for its parking places.

IRRELEVANT


E. It has been observed that on an average day, approximately three different cars park in each of the city-owned parking spots downtown.

IRRELEVANT
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Re: A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 14:16
Official answer is not provided, but in my opinion, the answer that most weakens the question is C. Maybe an official explanation would be useful for everybody
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Re: A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 17:14
I marked C too but this questions seems to me flawed.

Even costs associated with implementation of a solution could be high/higher whatever does not mean that revenues to the city treasury could not increase. If the question asks for profits or budget deficit shrinking (I am just theorizing) it change the game.

What if total revenues in collecting 1,2 per hour translates to total revenue of 1000 per day with costs of 500 and on other hand second option will bring 2000 daily revenue but costs 2100.

Does city revenue inc. ?

Sure it does. So even it is by far best answer choice it is not very precise.

just my 2c.
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Re: A city councilman has proposed a controversial new plan to increase ci  [#permalink]

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New post 20 Mar 2019, 22:19
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SajjadAhmad wrote:
A city councilman has proposed a controversial new plan to increase city revenues from the parking places downtown. He has proposed that instead of charging $1.20 per hour for parking in these spots, the city should make all parking spots five minute loading zones, and then assess $15 parking fines on anyone who parks in the spots for more than five minutes.

Which of the following, if true, provides the strongest argument that the councilman’s plan will not increase the city’s revenue?

A. A system that promotes parking fines will anger citizens, and they will consequently vote the councilman out of office if the plan goes through.

B. The city owns only 14 parking spots in the downtown area.

C. The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.

D. Ray’s parking garage, the only competition for the city-owned parking places downtown, charges $18 per day for its parking places.

E. It has been observed that on an average day, approximately three different cars park in each of the city-owned parking spots downtown.

Source: McGraw-Hill's GMAT (5th)


Council man's plan - the city should make all parking spots five minute loading zones instead of charging 1.20$ per hour.
Assess $15 parking fines on anyone who parks in the spots for more than five minutes.
So we have to find a weakener for the conclusion that the council man's plan will not increase city's revenue.

Prethinking - The council man assumes two things i) removing the 1.20$ per hour parking charge will not decrease the revenue, what if most cars park for less than five minutes then the revenue will not be expected to increase 2) Also what if the cost of assessing the plan is much more than the revenue that will be generated, in that case council man's plan is not likely to increase the revenue. 3) Also it is possible that the number of cars parked decrease so much that revenue is decreased.

Answer choice analysis
A. A system that promotes parking fines will anger citizens, and they will consequently vote the councilman out of office if the plan goes through.the success/failure of the plan doesn't depend on whether council man stays or not

B. The city owns only 14 parking spots in the downtown area.-no of parking spots will not affect the revenue generated. Even if these 14 parking spots generate more revenue than it is possible that revenue will increase

C. The costs of assessing and collecting the parking fines will surpass the revenues likely to be collected from the new plan.-in line with our thinking.Correct

D. Ray’s parking garage, the only competition for the city-owned parking places downtown, charges $18 per day for its parking places.doesn't affect the conclusion

E. It has been observed that on an average day, approximately three different cars park in each of the city-owned parking spots downtown.It doesn't state that whether the number of cars decreased or increased after the plan
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Re: A city councilman has proposed a controversial new plan to increase ci   [#permalink] 20 Mar 2019, 22:19
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