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19 Apr 2024, 01:30
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D
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Difficulty:
5%
(low)
Question Stats:
85% (01:04) correct
15%
(01:18)
wrong
based on 181
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In 2008, the world’s airlines reported an increase in the total number of passengers carried, but a decrease in total revenues, even though prices for airline tickets on all routes remained unchanged from the year before.
Which of the following resolves the paradox described above?
A. The airline industry was a victim of the recession in 2008.
B. Total passenger miles were up in 2008.
C. Fuel costs remained constant from 2007 to 2008.
D. Passengers traveled shorter distances on less expensive flights in 2008.
E. No new aircraft were purchased by any carrier in 2008.
Which of the following resolves the paradox described above?
A. The airline industry was a victim of the recession in 2008.
B. Total passenger miles were up in 2008.
C. Fuel costs remained constant from 2007 to 2008.
D. Passengers traveled shorter distances on less expensive flights in 2008.
E. No new aircraft were purchased by any carrier in 2008.
19 Apr 2024, 06:58
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A. The airline industry was a victim of the recession in 2008.
This does nothing with regards to resolving the paradox. We know that there was a decrease in revenue, but that the number of passengers increased and that the price of flights stayed the same. It is impossible that this was caused by a recession in the industry.
B. Total passenger miles were up in 2008.
This cannot be the case as the number of passengers increased. If there were an increase in passenger miles then surely the company would have made more money instead of having a decrease in revenue.
C. Fuel costs remained constant from 2007 to 2008.
Similarly to answer choice B, this cannot be the case. If the fuel price remained constant, and there were no further changes, then surely with an increase in passengers there would be an increase in revenue.
D. Passengers traveled shorter distances on less expensive flights in 2008.
If there is an increase of passengers, and as a whole more passengers were flying on less expensive shorter flights then the more expensive longer flgiths would have less passengers. This would result in an unbalancing from the previous year and yield a drop in revenue even with more passangers flying.
E. No new aircraft were purchased by any carrier in 2008.
This tells us merely that no money was spent on planes. This does nothing to resolve the paradox.
ANSWER D
This does nothing with regards to resolving the paradox. We know that there was a decrease in revenue, but that the number of passengers increased and that the price of flights stayed the same. It is impossible that this was caused by a recession in the industry.
B. Total passenger miles were up in 2008.
This cannot be the case as the number of passengers increased. If there were an increase in passenger miles then surely the company would have made more money instead of having a decrease in revenue.
C. Fuel costs remained constant from 2007 to 2008.
Similarly to answer choice B, this cannot be the case. If the fuel price remained constant, and there were no further changes, then surely with an increase in passengers there would be an increase in revenue.
D. Passengers traveled shorter distances on less expensive flights in 2008.
If there is an increase of passengers, and as a whole more passengers were flying on less expensive shorter flights then the more expensive longer flgiths would have less passengers. This would result in an unbalancing from the previous year and yield a drop in revenue even with more passangers flying.
E. No new aircraft were purchased by any carrier in 2008.
This tells us merely that no money was spent on planes. This does nothing to resolve the paradox.
ANSWER D
Shwarma
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19 Apr 2024, 14:06
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D
But I feel the options are quiet brief and open to interpretation.
Volume Increase, revenue decrease, and food costs remains constant.
An issue, that will explain why revenue is not increasing
Revenue= Average cost per ticket * number of people
So maybe the average cost/ticket is less -- is the only viable option to explain this paradox
rest all given options work against the question.
But I feel the options are quiet brief and open to interpretation.
Volume Increase, revenue decrease, and food costs remains constant.
An issue, that will explain why revenue is not increasing
Revenue= Average cost per ticket * number of people
So maybe the average cost/ticket is less -- is the only viable option to explain this paradox
rest all given options work against the question.
