It is currently 17 Oct 2017, 10:39

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# The Museum of Modern art in city X face financial

Author Message
Senior Manager
Joined: 19 Feb 2004
Posts: 413

Kudos [?]: 38 [0], given: 0

Location: Lungi
The Museum of Modern art in city X face financial  [#permalink]

### Show Tags

01 Apr 2004, 08:24
00:00

Difficulty:

(N/A)

Question Stats:

50% (00:40) correct 50% (00:00) wrong based on 2 sessions

### HideShow timer Statistics

The Museum of Modern art in city X face financial
difficulties. In order to solve these difficulties the admission
charge was increased by 20 percent. As a result, the museum's revenue
increased by 25 percent.

Which of the following could be properly inferred from the passage?

a. The increase in the admission charge coincided with an
increase in the museum expenses.
b. The increase in the admission charge coincided with a
decrease in the museum expenses.
c. The museum invested some of its income in improving its
facilities.
d. The increase in the admission charge coincided with an
increase in the number of visitors.
e. The increase in the admission charge coincided with a
decrease in the number of visitors.

Kudos [?]: 38 [0], given: 0

Director
Joined: 28 Oct 2003
Posts: 501

Kudos [?]: 34 [0], given: 0

Location: 55405

### Show Tags

01 Apr 2004, 09:52
I think D is the best answer, but it can only be properly inferred if we know that admission charges are the only source of revenue for the museum.

Also, I'm not sure that the GMAT requires its takers to know what "revenue" is. Many people (erroneously) think that revenue and profit are the same thing. If a person thinks that these are identical, B becomes an attractive answer.

Kudos [?]: 34 [0], given: 0

Senior Manager
Joined: 05 Feb 2004
Posts: 290

Kudos [?]: 5 [0], given: 0

Location: USA

### Show Tags

01 Apr 2004, 14:06
Betweeb B & D.............I pick B!!

Kudos [?]: 5 [0], given: 0

Manager
Joined: 27 Feb 2004
Posts: 185

Kudos [?]: 31 [0], given: 0

Location: illinois

### Show Tags

01 Apr 2004, 16:00
It is between B and D.....I think revenues mean total after all expenses and income...Right???then it must be D....

Kudos [?]: 31 [0], given: 0

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4285

Kudos [?]: 527 [0], given: 0

### Show Tags

01 Apr 2004, 16:07
Agree with the confusion. "Revenues" seems equivalent to "profits" in this case since only B stands out as a possible answer. If B is not right, I would rather disqualify all answer as contenders because D goes a too long way assuming that ticket sales is the ONLY source of revenue (often times, museums receive mucho in donations and they may derive other income from endowment funds ).
_________________

Best Regards,

Paul

Kudos [?]: 527 [0], given: 0

Senior Manager
Joined: 23 Aug 2003
Posts: 460

Kudos [?]: 27 [0], given: 0

Location: In the middle of nowhere

### Show Tags

01 Apr 2004, 16:50
Would back my instinct n choose B...

Vivek.
_________________

"Start By Doing What Is Necessary ,Then What Is Possible & Suddenly You Will Realise That You Are Doing The Impossible"

Kudos [?]: 27 [0], given: 0

Manager
Joined: 15 Mar 2004
Posts: 155

Kudos [?]: 2 [0], given: 0

Location: New York

### Show Tags

01 Apr 2004, 23:33
Good point on GMAT and Revenue. Id go with B on this one. No matter how many visitors come in 1 or a million, revenue still only goes up 20%, Has to be a decrese in something else.
_________________

---------------------------------------------------
The more I learn, the more I realize I know nothing!
----------------------------------------------------

Kudos [?]: 2 [0], given: 0

Senior Manager
Joined: 19 Feb 2004
Posts: 413

Kudos [?]: 38 [0], given: 0

Location: Lungi

### Show Tags

02 Apr 2004, 05:41
yes D is right
D: which is the only logical link for revenue increase as more
visitors visited the museum. B is wrong because Expenses reduced implies profits increase which is not stated in the Stimulus.

rgds,
batli

Kudos [?]: 38 [0], given: 0

SVP
Joined: 30 Oct 2003
Posts: 1788

Kudos [?]: 112 [0], given: 0

Location: NewJersey USA

### Show Tags

02 Apr 2004, 14:46
There is a suttle difference between B and D.

Since the Museum is already facing difficulties it probably cut down its expenses as much as possible. Hence there is no room to reduce the expenses further. This will rule out B vs D.

Kudos [?]: 112 [0], given: 0

02 Apr 2004, 14:46
Display posts from previous: Sort by