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# Pundit: Our city made a mistake when it sold a private..(assumption)

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Intern
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Joined: 15 Feb 2016
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Concentration: Finance
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Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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15 Feb 2019, 22:01
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Difficulty:

15% (low)

Question Stats:

78% (01:26) correct 22% (01:48) wrong based on 327 sessions

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Pundit: Our city made a mistake when it sold a private company the rights to assess and collect parking fees. The private company raised parking fees and so has been able to reap profits far greater than what it paid for the rights to assess and collect the fees. lf the city had not sold the rights, then that money would have gone to the city.

The pundit's argument requires the assumption that:

(A) other private companies would have been willing to pay for the rights to assess and collect parking fees

(B) the city could have raised parking fees had it not sold the rights

(C) municipal functions like assessing and collecting parking fees should always be handled directly by the municipality in question

(D) the revenue from parking fees is not the only factor that cities need to consider in setting the rates for parking fees

(E) private companies assess and collect parking fees more efficiently than cities do
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Re: Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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06 Mar 2019, 07:13
If i negate B, the argument doesn't break. It gets strengthened. So how is B the answer? Can anyone explain?
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Re: Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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06 Mar 2019, 07:31
akanshaxo wrote:
lf the city had not sold the rights, then that money would have gone to the city.

The author concludes by saying that the city would have made money that the companies had made. For the companies to make profits, they must have raised the ticket's price.

Thus, the city would have done the same and would have made money

akanshaxo wrote:
(B) the city could have raised parking fees had it not sold the rights
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Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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22 May 2019, 07:28
aashraiarun, think about the conclusion of the argument. The conclusion is in the first sentence - the city claims that it made a mistake when it sold the rights.

So, if you negate answer choice B - "the city could NOT have raised parking fees had it not sold the rights", then it attacks the conclusion of the argument. In other words, if no money could be raised, then selling the rights is not a mistake (while the conclusion says that selling was a mistake).

Hope it helps.
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Re: Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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22 May 2019, 08:01
Premise: The private company was able to reap profits far greater than what it paid by raising parking fees.

Conclusion: The city made a mistake by selling the rights to assess and collect the parking fees to the private company because the money would have gone to the city instead.

Assumption: The city would have raised the parking fees had it not sold the rights to the private company.
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Re: Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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22 May 2019, 08:46
akanshaxo wrote:
Pundit: Our city made a mistake when it sold a private company the rights to assess and collect parking fees. The private company raised parking fees and so has been able to reap profits far greater than what it paid for the rights to assess and collect the fees.lf the city had not sold the rights, then that money would have gone to the city.

The pundit's argument requires the assumption that:

(A) other private companies would have been willing to pay for the rights to assess and collect parking fees

(B) the city could have raised parking fees had it not sold the rights

(C) municipal functions like assessing and collecting parking fees should always be handled directly by the municipality in question

(D) the revenue from parking fees is not the only factor that cities need to consider in setting the rates for parking fees

(E) private companies assess and collect parking fees more efficiently than cities do

The best strategy in my opinion will be challenging the highlighted part of the stimulus!!!!

Selling rights ---------------> Collection of parking fees.

Option (B) correctly states the same , negating the option shatters the conclusion, hence Answer must be (B)
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Abhishek....

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Joined: 15 Jan 2018
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Re: Pundit: Our city made a mistake when it sold a private..(assumption)  [#permalink]

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26 May 2019, 06:53
aashraiarun wrote:
If i negate B, the argument doesn't break. It gets strengthened. So how is B the answer? Can anyone explain?

You have answered your question yourself. If on negation, an answer choice shatters the conclusion, then it would strengthen the conclusion. Or we can say, it is the assumption on which the argument is based. So, (B) is the correct choice.
Re: Pundit: Our city made a mistake when it sold a private..(assumption)   [#permalink] 26 May 2019, 06:53
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