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# Happygo, a car rental company, lowered its prices dramatically gaining

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Joined: 06 Jul 2014
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GMAT 1: 660 Q48 V33
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Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 05:07
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76% (01:48) correct 24% (01:51) wrong based on 265 sessions

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Happygo, a car rental company, lowered its prices dramatically gaining many more customers than it once had. Consequently, the railway companies have reported a decrease of roughly 30% in the number of commuters traveling on their intercity routes. However, the urban bus companies claim that the numbers of commuters on their lines fluctuate but maintain an average that has not changed for the better or for the worse since Happygo made its price changes. It seems quite clear that __________.

Which of the following best completes the passage below?

A) even at competitive prices, some people prefer buses over rented cars for travelling within cities
B) commuters using public transportation, such as buses, are far more punctual, on average, when compared to those using private vehicles
C) to compensate for the market shift created by Happygo's strategy, the urban bus companies lowered their prices as well.
D) public transportation, whether by bus or by train, is always a compromise for commuters
E) Happygo's changes have affected the railway companies' revenues due to the latter's relatively low advertising budget

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Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 06:52
I hesitate between A and D.

A sounds very good because even the price of rental goes down, the people using buses are not changed. So if the price is competitive, people will use buses more than cars.

For D, I do not like the word "always"
how to eliminate D?
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Joined: 10 Aug 2015
Posts: 103
Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 07:49
1
Happygo, a car rental company, lowered its prices dramatically gaining many more customers than it once had. Consequently, the railway companies have reported a decrease of roughly 30% in the number of commuters traveling on their intercity routes. However, the urban bus companies claim that the numbers of commuters on their lines fluctuate but maintain an average that has not changed for the better or for the worse since Happygo made its price changes. It seems quite clear that __________.

Which of the following best completes the passage below?

A) even at competitive prices, some people prefer buses over rented cars for travelling within cities
This gives a reason for unchanged bus users. This ones looking good.

B) commuters using public transportation, such as buses, are far more punctual, on average, when compared to those using private vehicles
We are not concerned about the punctuality of commuters here. OFS

C) to compensate for the market shift created by Happygo's strategy, the urban bus companies lowered their prices as well.
If this were true,then market share of buses would have increased. Nothing is given of that sort.

D) public transportation, whether by bus or by train, is always a compromise for commuters
If true, it should have affected both. But it is affecting only trains.

E) Happygo's changes have affected the railway companies' revenues due to the latter's relatively low advertising budget
We are not concerned about budget.OFS

Option A.
Harley1980 Am I thinking correctly?
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Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 08:04
applebus wrote:
I hesitate between A and D.

A sounds very good because even the price of rental goes down, the people using buses are not changed. So if the price is competitive, people will use buses more than cars.

For D, I do not like the word "always"
how to eliminate D?

D says "public transportation, whether by bus or by train, is always a compromise for commuters"
This only inform us against public transportation including both bus and train which cannot be inferred from the passage above.
Bus suffered no damage whereas train suffered significant losses.
Nowhere did he mention that both are troublesome for commuters.
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Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 08:15
1
Happygo, a car rental company, lowered its prices + gaining many customers.
Consequently, the railway companies have reported a decrease of roughly 30% in the number of commuters
However, the urban bus companies claim to maintain an average
It seems quite clear that __________.

Complete the argument question _Inference question

A) even at competitive prices, some people prefer buses over rented cars for travelling within cities
(Some here makes this option must be true based on the argument. Correct answer)
B) commuters using public transportation, such as buses, are far more punctual, on average, when compared to those using private vehicles
(Punctuality is in individual nature and is OFS here)
C) to compensate for the market shift created by Happygo's strategy, the urban bus companies lowered their prices as well.
(this cannot be said since buses claim that their no of customers fluctuated but maintained average i.e., sometimes it was low and sometimes it was high. if they would have lowered their prices then it would have either maintained constant or could have increased but that is no so. This option cannot be inferred from the argument.)
D) public transportation, whether by bus or by train, is always a compromise for commuters
(D says "public transportation, whether by bus or by train, is always a compromise for commuters"
This only inform us against public transportation including both bus and train which cannot be inferred from the passage above.
Bus suffered no damage whereas train suffered significant losses.
Nowhere did he mention that both are troublesome for commuters.)

E) Happygo's changes have affected the railway companies' revenues due to the latter's relatively low advertising budget
(We cannot say this as even if two changes happened in the same time period subsequently earlier of them need not be the cause of the other.)
Someone help me I always realise the correct reason only after failure
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Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
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Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 12:21
applebus wrote:
I hesitate between A and D.

A sounds very good because even the price of rental goes down, the people using buses are not changed. So if the price is competitive, people will use buses more than cars.

For D, I do not like the word "always"
how to eliminate D?

Hello applebus

I think that D is actually weakener so this phrase can not complete the argument because if bus and train is compromiss (this is negative as I understand it) then this situation should lead to the lowering of number of commuters in buses.
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Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
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Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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17 Sep 2015, 12:27
anudeep133 wrote:
Happygo, a car rental company, lowered its prices dramatically gaining many more customers than it once had. Consequently, the railway companies have reported a decrease of roughly 30% in the number of commuters traveling on their intercity routes. However, the urban bus companies claim that the numbers of commuters on their lines fluctuate but maintain an average that has not changed for the better or for the worse since Happygo made its price changes. It seems quite clear that __________.

Which of the following best completes the passage below?

A) even at competitive prices, some people prefer buses over rented cars for travelling within cities
This gives a reason for unchanged bus users. This ones looking good.

B) commuters using public transportation, such as buses, are far more punctual, on average, when compared to those using private vehicles
We are not concerned about the punctuality of commuters here. OFS

C) to compensate for the market shift created by Happygo's strategy, the urban bus companies lowered their prices as well.
If this were true,then market share of buses would have increased. Nothing is given of that sort.

D) public transportation, whether by bus or by train, is always a compromise for commuters
If true, it should have affected both. But it is affecting only trains.

E) Happygo's changes have affected the railway companies' revenues due to the latter's relatively low advertising budget
We are not concerned about budget.OFS

Option A.
Harley1980 Am I thinking correctly?

Hello anudeep133
I agree with you about A
About D you formulate it in unusual way because I get used to analyze argument and then check the answer if it can be true and you make it reverse way: take answer D as correct and check the argument. This is unusual approach but as I see it works too )
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Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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22 Jul 2017, 06:58
I disagree with the OA i.e A. Nowhere is it given the bus and rental cars have competetive prices. Experts-please comment.
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Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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01 Nov 2017, 22:04
Harley1980 wrote:
Happygo, a car rental company, lowered its prices dramatically gaining many more customers than it once had. Consequently, the railway companies have reported a decrease of roughly 30% in the number of commuters traveling on their intercity routes. However, the urban bus companies claim that the numbers of commuters on their lines fluctuate but maintain an average that has not changed for the better or for the worse since Happygo made its price changes. It seems quite clear that __________.

Which of the following best completes the passage below?

A) even at competitive prices, some people prefer buses over rented cars for travelling within cities
B) commuters using public transportation, such as buses, are far more punctual, on average, when compared to those using private vehicles
C) to compensate for the market shift created by Happygo's strategy, the urban bus companies lowered their prices as well.
D) public transportation, whether by bus or by train, is always a compromise for commuters
E) Happygo's changes have affected the railway companies' revenues due to the latter's relatively low advertising budget

Hi,
Can u tell me how the fluctuation happens- if the prices are competitive, some people who normally travel by bus switch to cars, so, the number of passengers went down. Now, I wonder how the number of passengers actually increase. People who travel by cars wont switch to travel by buses. Similarly,people who travel by railways, can jump to travel by car for a comfort purpose, but what's the point to switch to buses.
So, as option A states- even at competitive prices, some people prefer buses over rented cars for travelling within cities. Here the number of people who are travelling by buses, is the same people (a little reduction in number as some people switch to cars), who were travelling earlier before the Happygo made its price change. So, how can fluctuation is justfied, to keep the average is maintained.
Manager
Joined: 05 Dec 2014
Posts: 210
Location: India
GMAT 1: 690 Q48 V36
GPA: 3.54
Re: Happygo, a car rental company, lowered its prices dramatically gaining  [#permalink]

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01 Nov 2017, 22:05
Hi,
Can u tell me how the fluctuation happens- if the prices are competitive, some people who normally travel by bus switch to cars, so, the number of passengers went down. Now, I wonder how the number of passengers actually increase. People who travel by cars wont switch to travel by buses. Similarly,people who travel by railways, can jump to travel by car for a comfort purpose, but what's the point to switch to buses.
So, as option A states- even at competitive prices, some people prefer buses over rented cars for travelling within cities. Here the number of people who are travelling by buses, is the same people (a little reduction in number as some people switch to cars), who were travelling earlier before the Happygo made its price change. So, how can fluctuation is justfied, to keep the average is maintained.
Re: Happygo, a car rental company, lowered its prices dramatically gaining &nbs [#permalink] 01 Nov 2017, 22:05
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