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# In order to finance road repairs, the highway commision of a

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Director
Joined: 17 Sep 2005
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In order to finance road repairs, the highway commision of a [#permalink]

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12 Jun 2006, 10:28
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In order to finance road repairs, the highway commision of a certain state is considering a 50 percent increase in the 10-cents-per-mile toll for vehicles using its toll highway. The highway commissioner claims that the toll increase will increase the annual revenue generated by the toll highway by atleast 50 percent per year.

Which of the following is an assumption on which the highway commisioner's claim depends?

(A) The amount of money required annually for road repairs will not increase from its current level.
(B) The total number of trips made on the toll highway per year will not decrease from its current level.
(C) The average length of the trip made on the toll highway will not decrease from its current level.
(D) The number of drivers who consistently avoid the highway tolls by using secondary roads will not increase from its current level.
(E) The total distance traveled by vehicles on the toll highway per year will not decrease from its current level.

Regards,
Brajesh

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VP
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Re: CR - Toll Highway [#permalink]

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12 Jun 2006, 10:38
it is a clear E. B and C are traps. others donot help.

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VP
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12 Jun 2006, 11:16
B.

Increase in toll will not cause decrease in trips.

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VP
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Re: CR - Toll Highway [#permalink]

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12 Jun 2006, 11:18
Good catch MA... I got side-tracked by the 10-cent and didn't pay attention to the 10c/mile.
Should be E.

MA wrote:
it is a clear E. B and C are traps. others donot help.

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VP
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12 Jun 2006, 11:38
ha... excellent example of a tricky question!

I also got the 10cent/mile thing the 2nd time I read it...

So we need to increase the total revenue, and increase in fare will do such thing only when and if people travel same or longer distance... (E)

in B... the trips might be shorter despite the larger number and less mileage means less revenue

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CEO
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Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008

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12 Jun 2006, 12:12
E for sure.
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

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Director
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12 Jun 2006, 19:46
Hi Brajesh

Is this topic posted twice? and running in paralle in 2 different threads..

http://www.gmatclub.com/phpbb/viewtopic.php?t=30454

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SVP
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12 Jun 2006, 21:24
Great question.
Indeed B and C are traps........when I first read this question, was wondering if you deliberately wnated to confuse us.

The passage states that the taxex will be increase per mile hence trips or lenght doesnot matter. Its the distance travelled.

E

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Senior Manager
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12 Jun 2006, 22:14

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Manager
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13 Jun 2006, 08:29
Yup,

It's E.

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Director
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14 Jun 2006, 09:55
Beyond700 wrote:
Hi Brajesh

Is this topic posted twice? and running in paralle in 2 different threads..

http://www.gmatclub.com/phpbb/viewtopic.php?t=30454

Oh...Yes...My mistake. Apology!!
I think I was while posting the CR.

Well OA is E.

OE:

The toll is charged on a per-mile basis.
A 50 percent increase in the toll will bring a 50 percent increase in revenue only if the total number of miles traveled on the toll highway per year does not increase.

Thanks,
Brajesh

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14 Jun 2006, 09:55
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# In order to finance road repairs, the highway commision of a

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