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In order to increase revenues, an airport plans to change

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Joined: 13 Aug 2009
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In order to increase revenues, an airport plans to change  [#permalink]

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02 Apr 2010, 00:51
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In order to increase revenues, an airport plans to change the parking fees it charges at its hourly parking lots. Rather than charging \$2.00 for the first two-hour period, or part thereof, and \$1.00 for each hour thereafter, the airport will charge \$4.00 for the first four-hour period, or part thereof, and \$1.00 for each hour thereafter.
Which of the following is a consideration that, if true, suggest that the plan will be successful in increasing revenues?
(A) Very few people who park their cars at the hourly parking lot at the airport leave their cars for more than two hours at a time.
(B) Over the past several years, the cost to the airport of operating its hourly parking facilities has been greater than the revenues it has received from them.
(C) People who leave their cars at the airport while on a trip generally park their cars in lots that charge by the day rather than by the hour.
(D) A significant portion of the money spent to operate the airport parking lot is spent to maintain the facilities rather than to pay the salaries of the personnel who collect the parking fees.
(E) The hourly parking lots at the airport have recently been expanded and are therefore rarely filled to capacity.

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Joined: 03 Feb 2010
Posts: 48
Re: In order to increase revenues, an airport plans to change  [#permalink]

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03 Apr 2010, 22:41
Ans : A.

its very clear,while looking to the fromer and latter rates,if a car is parked for more than 3hrs,then there's no change in wat customer pays now as parking fees.
but if most cust parks for less than or equal to 2hrs,then according to prev plan it will collect jus 2\$,but the new plan will make cust to pay 4\$...thereby collecting 2\$ more on each cust.
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Joined: 18 Feb 2010
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Re: In order to increase revenues, an airport plans to change  [#permalink]

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10 Apr 2010, 11:45
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(A) Very few people who park their cars at the hourly parking lot at the airport leave their cars for more than two hours at a time. (which means many people leave their car at the parking lot for 2 or less than 2 hours. This would generate \$4 revenue for airport for each such car parked instead of \$2 as per earlier plan. Thus increasing revenues. And when car is parked for more than 2 hours the revenue generated would be same in both the plans.)
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Re: In order to increase revenues, an airport plans to change  [#permalink]

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18 Apr 2019, 15:45
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Re: In order to increase revenues, an airport plans to change   [#permalink] 18 Apr 2019, 15:45
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