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09 Mar 2023, 00:12
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D
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Difficulty:
25%
(medium)
Question Stats:
73% (01:03) correct
27%
(01:04)
wrong
based on 280
sessions
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In 1970, Transylvania earned $ 1 million in tourist revenue. By 1990, tourist revenue doubled, and in 2000 it reached the sum of $ 4 million.
Each of the following, if true, may explain the trend in tourist revenue except:
(A) The number of tourists has increased from 1970 to 2000.
(B) Average expenditure per tourist has increased.
(C) Average stay per tourist has increased.
(D) The number of total hotel rooms has increased.
(E) The average price of tourist services has increased.
Each of the following, if true, may explain the trend in tourist revenue except:
(A) The number of tourists has increased from 1970 to 2000.
(B) Average expenditure per tourist has increased.
(C) Average stay per tourist has increased.
(D) The number of total hotel rooms has increased.
(E) The average price of tourist services has increased.
16 Apr 2023, 22:14
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I need some help here. The number of total hotel rooms has increased - Why does this not help in explaining why revenue has increased?
If there are more number of rooms, it provides accommodation for more number of tourists, thereby increasing revenue.
The stem of the question is - Each of the following, if true, may explain the trend in tourist revenue. I'm trying to find a reason why D definitely does not explain the trend
If there are more number of rooms, it provides accommodation for more number of tourists, thereby increasing revenue.
The stem of the question is - Each of the following, if true, may explain the trend in tourist revenue. I'm trying to find a reason why D definitely does not explain the trend
wadhwakaran
Joined: 31 Mar 2022
Last visit: 22 Jul 2025
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Location: India
Concentration: General Management, International Business
Schools: INSEAD Aug'24 intake Oxford Said'25 Judge '25 Imperial'25 HEC Sep'24 Intake LBS '26 ISB '27
GMAT 1: 700 Q50 V35
GPA: 2.8
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Schools: INSEAD Aug'24 intake Oxford Said'25 Judge '25 Imperial'25 HEC Sep'24 Intake LBS '26 ISB '27
GMAT 1: 700 Q50 V35
Posts: 262
17 Apr 2023, 00:03
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All we know from the question statement is that the revenue is increasing over the years. We are asked to find the statement which doesn't help explaining the trend.
(A) The number of tourists has increased from 1970 to 2000. This one helps explaining the trend. Increase in number of tourists results in increase in revenue.
(B) Average expenditure per tourist has increased. This one helps explaining the trend. Increase in average expenditure per tourist results in increase in revenue.
(C) Average stay per tourist has increased. This one helps explaining the trend. Increase in average stay per tourist results in increase in revenue.
(D) The number of total hotel rooms has increased. This one does not help directly explaining the trend as in this we are not informed anything about the number of guests. Assuming that more number of rooms will provide accommodation for more number of tourists would lead this statement to explain the trend but on its own this statement does not explain the trend.
(E) The average price of tourist services has increased. This one helps explaining the trend. Increase in average price of tourist services results in increase in revenue.
(A) The number of tourists has increased from 1970 to 2000. This one helps explaining the trend. Increase in number of tourists results in increase in revenue.
(B) Average expenditure per tourist has increased. This one helps explaining the trend. Increase in average expenditure per tourist results in increase in revenue.
(C) Average stay per tourist has increased. This one helps explaining the trend. Increase in average stay per tourist results in increase in revenue.
(D) The number of total hotel rooms has increased. This one does not help directly explaining the trend as in this we are not informed anything about the number of guests. Assuming that more number of rooms will provide accommodation for more number of tourists would lead this statement to explain the trend but on its own this statement does not explain the trend.
(E) The average price of tourist services has increased. This one helps explaining the trend. Increase in average price of tourist services results in increase in revenue.
