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The city of Workney, in raising bus fares from $1.00 to

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The city of Workney, in raising bus fares from $1.00 to [#permalink]

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New post 20 Aug 2011, 06:37
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The city of Workney, in raising bus fares from $1.00 to $1.25, proposed that 18 fare token be sold for $20.00 to alleviate the extra burden of the fare increase on the city's low-income residents. Critics suggested alternatively that 9 fare tokens be sold for $10.00, because a $20.00 outlay would be prohibitive for low-income riders.

The alternative proposal depends on which of the following assumptions?

a) Low-income residents of Workney will continue to ride the buses in the same numbers despite the fare increase

b) Low-income riders would be more likely to take advantage of the savings afforded by the 9-token offer than would other riders.

c) The outlay of $10.00for the purchase of 9 fare tokens would not be prohibitive for low-income bus riders

d) The proposed fare increase is needed for the purchase of new buses for the city's bus system

e) Buses provide the only means of public transportation in the city of Workney.
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Re: GWD(1) [#permalink]

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New post 20 Aug 2011, 12:16
C - the assumption is that $10 is not prohibitive for the low income people. After reading the question, I was looking for an answer that's along the lines of "low income people don't have the cash flow to buy $20 in fares at once" but this answer is not amongst the choices given.
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Re: GWD(1) [#permalink]

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New post 10 Sep 2011, 09:53
Jasontuyj2012 wrote:
The city of Workney, in raising bus fares from $1.00 to $1.25, proposed that 18 fare token be sold for $20.00 to alleviate the extra burden of the fare increase on the city's low-income residents. Critics suggested alternatively that 9 fare tokens be sold for $10.00, because a $20.00 outlay would be prohibitive for low-income riders.

The alternative proposal depends on which of the following assumptions?

a) Low-income residents of Workney will continue to ride the buses in the same numbers despite the fare increase

b) Low-income riders would be more likely to take advantage of the savings afforded by the 9-token offer than would other riders.

c) The outlay of $10.00for the purchase of 9 fare tokens would not be prohibitive for low-income bus riders

d) The proposed fare increase is needed for the purchase of new buses for the city's bus system

e) Buses provide the only means of public transportation in the city of Workney.


C. The critics assume a $10.00 outlay would not be prohibitive otherwise no reason for them to propose a $10.00 outlay.
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Re: The city of Workney, in raising bus fares from $1.00 to [#permalink]

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New post 14 Mar 2017, 07:48
Jasonammex wrote:
Why B is not right?


B) Low-income riders would be more likely to take advantage of the savings afforded by the 9-token offerthan
would other riders
.

A per critics , 18-token for $20 would be prohibitive of the lower income riders. In other words , all types of riders should get equal advantage. No bias .
So, they assumed that the 9-token scheme will not pose any problem for the lower income riders.
Reading once, option B seems to be the perfect contender. However, as highlighted, the 9-token scheme offer is more beneficial to the low-income riders than the other riders. Therefore, this makes the 9-token scheme biased towards the low income riders.

I hope you get it now.
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Re: The city of Workney, in raising bus fares from $1.00 to   [#permalink] 14 Mar 2017, 07:48
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