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

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

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New post 16 Aug 2010, 13:55
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A
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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.

Which of the following is an assumption underlying the plan to avoid a slowdown in the city’s economy?

A. Three months is a sufficient period of time to allow gasoline prices to stabilize.
B. Commuters who usually drive to work will begin taking public transportation if it is free.
C. Other factors in the local economy are affecting the price of gasoline.
D. The cost of parking in the city will remain relatively stable.
E. People who work in the city are more likely to drive than to take public transportation.
[Reveal] Spoiler: OA

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New post 16 Aug 2010, 13:59
Choice B is close but the only problem is that it would be free for only 3 months which means people could start going back using their cars once it is not free anymore which is after 3 months. More over if the price of gasoline stabilizes after 3 months then it might be a preferred choice for most of the people to take their own vehicle

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

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New post 16 Aug 2010, 18:55
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zest4mba wrote:
Choice B is close but the only problem is that it would be free for only 3 months which means people could start going back using their cars once it is not free anymore which is after 3 months. More over if the price of gasoline stabilizes after 3 months then it might be a preferred choice for most of the people to take their own vehicle





Try negate A and the gas prices won't fall. Well, may be in this case, the governor will extend the deal.

Negate B, the plan is useless.
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 16 Aug 2010, 20:02
zest4mba wrote:
Choice B is close but the only problem is that it would be free for only 3 months which means people could start going back using their cars once it is not free anymore which is after 3 months. More over if the price of gasoline stabilizes after 3 months then it might be a preferred choice for most of the people to take their own vehicle


Thing is, even if the gas price stabilizes, it still is high and it will takes a lot of money out of the people's pocket and thus affect the economy.

The focus of the plan is on this 3 months period, we don't know whether there are any other plan after 3 months, so for now, it is good enough and thus B is correct.

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

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New post 16 Aug 2010, 21:24
negate B and plan is useless.

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

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New post 17 Aug 2010, 04:25
what is the best approach to negate a choice.

for instance choice A is that gas prices may stabilize in 3 months.

so should i think what if they did not stabilize in 3 months. even then because
the other choice offers free commute so it should be the best choice.

where as if i negate choice b of free commute then there won't be any choice for commuters.

is that how you negate choices.

guys please throw some light

thanks

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

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New post 17 Aug 2010, 05:11
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zest4mba wrote:
what is the best approach to negate a choice.

for instance choice A is that gas prices may stabilize in 3 months.

so should i think what if they did not stabilize in 3 months. even then because
the other choice offers free commute so it should be the best choice.

where as if i negate choice b of free commute then there won't be any choice for commuters.

is that how you negate choices.

guys please throw some light

thanks


I second rlevochkin's comments.

Consider this :-

The argument is 'commuters who drive to work' centric.
Flow of thoughts : Gasoline Price has gone up,
therefore 'commuters who drive to work' are facing a large increase in transportation exps..
..therefore this will limit the funds they have available to spend in other areas ..
..and hence cause a slowdown in the local economy..
..Now, to address this issue the city council has come up with a plan..
..and the last sentence of the argument explains the rationale of this plan

Let us now evaluate each answer choice starting with :-

E: People who work in the city are more likely to drive than to take public transportation - If this would have been the case what's the point in suspending fares on all forms of public transport. Hence this cannot be an assumption.
D: The cost of parking in the city will remain relatively stable - Parking Cost is not within the scope of discussion
C: Other factors in the local economy are affecting the price of gasoline - Again, out of scope

Chocie A & B are pretty close. I would go with choice B - Commuters who usually drive to work will begin taking public transportation if it is free since, as mentioned earlier, the argument is commuters who drive to work centric. Negate this and the plan is useless.
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 17 Aug 2010, 14:47
* Three months is a sufficient period of time to allow gasoline prices to stabilize. < stabilizing of gasoline prices is out of scope>
* Commuters who usually drive to work will begin taking public transportation if it is free. <correcto>
* Other factors in the local economy are affecting the price of gasoline. <dont care about other factors>
* The cost of parking in the city will remain relatively stable. <does the argument talks about parking>
* People who work in the city are more likely to drive than to take public transportation. <this will kill the whole argument>

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

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New post 18 Aug 2010, 00:24
I am in for B +1 :)
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 18 Aug 2010, 02:28
M WID B

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

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New post 18 Aug 2010, 11:16
Premise-"Do to sharp rise in gas-....in other areas
Premise-"In order to forestall...fares will be suspended for 3 months.
Premise- If commuters can get to work more cheaply-they will have more money to spend...
conclusion-citys finances will not be affected by higher gasoline prices

without which assumption the conclusion can't live with
choice B

NOTE- TAKE A LOOK AT THE LAST PREMISE AND CONCLUSION. THAT is all we need to solve this question

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

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New post 19 Aug 2010, 13:03
Surely B

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

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New post 19 Aug 2010, 15:39
it's B. And it's not A. And this is not a 700 level question. kthx.
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 20 Aug 2010, 12:18
i would go with option B too...

of all ptions only A n B are close... but then gasoline prices stabilizing is out of context...since stabilise can mean that they wont peak n trough often...but then that stabilized price can still be out of reach of commuters...

hence option B seems the best...

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New post 20 Aug 2010, 17:16
very clearly B
seem to be a 650 question, at best

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

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New post 07 Sep 2010, 01:29
B is clearly more relevant than A ...even though A is not completely wrong
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 16 Feb 2012, 19:03
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.


Which of the following is an assumption underlying the plan to avoid a slowdown in the city’s economy?
• Three months is a sufficient period of time to allow gasoline prices to stabilize.
• Commuters who usually drive to work will begin taking public transportation if it is free.
• Other factors in the local economy are affecting the price of gasoline.
• The cost of parking in the city will remain relatively stable.
• People who work in the city are more likely to drive than to take public transportation.

Why is C incorrect?

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

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New post 16 Feb 2012, 21:06
(A): We are not considering a definite time period here - just whether the measures will be effective. Incorrect.
(B): Correct. If commuters who drive to work do not begin taking public transportation when it is free, they will not have savings left over on fuel expenditure, and so will not spend in other sectors of the economy. This assumption is therefore critical to this argument -> it will render the argument void if it is false.
(C): Irrelevant. Even if other factors are affecting the price of gasoline, the plan proposed by the city council will still work. The factors contributing to the gasoline price rise are not a part of the argument at all. Incorrect.
(D): The cost of parking is irrelevant to the plan. Incorrect.
(E): This is not an assumption made in the plan. Rather it will render the plan invalid if true. Incorrect.
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Re: Due to a sharp rise in the price of gasoline, commuters who [#permalink]

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New post 16 Feb 2012, 23:20
The price of petroleum as quoted in news generally refers to the spot price per barrel of either WTI/light crude as traded on the New York Mercantile Exchange for delivery at Cushing, Oklahoma, or of Brent as traded on the Intercontinental Exchange for delivery at Sullom Voe.

High gas prices are usually caused by high prices for crude oil, which accounts for 55% of the price of gasoline. This year, concerns about a potential military action, by either Israel or even the U.S., against Iran are causing oil prices to creep up.

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

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