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# The subway system in New City has recently been running a

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Joined: 17 Jul 2014
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Re: The subway system in New City has recently been running a [#permalink]

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05 Dec 2016, 15:11
Archit143 wrote:
The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward

I was stuck between A and D.
a quarter is not that long (I know people in Swiss are buying annual passes)- so people can easily buy in advance, therefore, there won't be an increase in revenue starting next quarter. D though, has no effect on the conclusion.

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Re: The subway system in New City has recently been running a [#permalink]

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05 Dec 2016, 22:44
[Conclusion]- the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

IMO D

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Re: The subway system in New City has recently been running a [#permalink]

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06 Dec 2016, 18:52
I don't get the reasoning behind not selecting answer E here. It doesn't weaken the conclusion. The conclusion in the question is based upon the fare being increased and not other factors.

I think D and E can be right answers here.

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Re: The subway system in New City has recently been running a [#permalink]

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04 Apr 2017, 09:04
rohitsatya wrote:
I don't get the reasoning behind not selecting answer E here. It doesn't weaken the conclusion. The conclusion in the question is based upon the fare being increased and not other factors.

I think D and E can be right answers here.

https://gmatclub.com/forum/the-subway-s ... l#p1407388

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Re: The subway system in New City has recently been running a [#permalink]

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04 Apr 2017, 17:56
1
KUDOS
The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.
People may buy tokens in bulk before the next quarter and use them later,which will cause the estimates to be wrong and the subway may still be in losses initially.

B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.
if the most bus fare is lower than the subway fare in the most heavily traveld route then the people will prefer the bus rather than the subway.

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.
if the fare increase by 25% then the funds allocated to subway will decrease and the overall financial estimates will be wrong and the subway will not perform as planned on the economic front.

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.
THe increase in the jobs in inaccessible area is out of scope because the subway will still have same ridership.this does not strengthen the argument and thus the correct answer.

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward
the ban will weaken the ridership.

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Re: The subway system in New City has recently been running a [#permalink]

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05 Jul 2017, 06:53
The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward
_________________

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Re: The subway system in New City has recently been running a [#permalink]

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09 Jul 2017, 04:21
Just countered this question from MCAT. To me, this is a tough CR question.

The following is OE:

(1) Identify the Question Type

The language "calls into question" and "if true" indicates that this is a Weaken the Conclusion question. The "EXCEPT" variation indicates that we need to find and eliminate 4 "weaken" answers. The "odd one out" answer, an answer that does not weaken, will be the correct answer.

(2) Deconstruct the Argument

In order to avert a budget crisis, New City's transit authority must increase subway revenues by 50 percent. The chair of the transit authority has devised a plan to increase subway fares by exactly this percentage and believes that this will avert any crisis. In other words, the chair is assuming that a 50 percent fare increase will lead directly to a 50 percent increase in actual revenues and that this increase will occur as soon as the plan is implemented.

(3) State the Goal

We're asked to find something that does not weaken the argument. The four (incorrect) answers, which will weaken the argument, must each make the conclusion at least somewhat less likely to be true or valid. The correct answer will either strengthen the conclusion or be irrelevant to the conclusion.

Implicit in the stated plan is the assumption that nothing will offset the fare increase or delay an immediate increase in revenues. The chairperson assumes that ridership levels will not drop and that there won't be any other reasons why the 50% fare increase might not result in an immediate revenue increase of 50%.

(4) Work From Wrong To Right

(A) If prepaid tokens will remain valid, current subway riders who purchase a large number of tokens at current prices will be able to avoid paying the increased fare for some time – thus delaying the projected increase in revenue. The chairperson assumes that the fare increase will produce the desired result more or less immediately, an assumption that is undermined by this choice.

(B) If this statement is true, then the proposed subway fare increase will raise subway fares to a level higher than the corresponding express bus fares. In that case, many current subway riders will have an incentive to switch from the subway to the express buses. If some do switch, revenues are likely to decrease.

(C) The proposed subway fare increase is far greater than 25 percent, so, if this statement is true, the increase will trigger a reduction in the tax revenue given to the subway system. That tax reduction will offset the revenue increase from the greater fare, thus undermining the chairperson's plan.

(D) CORRECT. The greater rate of job growth in areas outside the reach of the subway does not, by itself, contain or imply any basis for a negative effect on subway revenues. In particular, there is no reason to assume that the number of workers who ride the subway will decrease. In fact, the wording of this choice suggests that New City is actually adding jobs in areas served by the subway, albeit more slowly than in the suburbs; thus, if anything, the subway's ridership is more likely to increase (however slowly) than to decrease. The chairperson's argument requires only that the ridership not decrease, so this choice does not weaken that argument.

(E) This choice states that "a significant percentage" of New City's professionals have come to view mobile phones as essential, specifically during commute times. If phones are banned, many current subway riders will have an incentive to switch from the subway to another mode of transportation; if so, revenues are likely to decrease.

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Re: The subway system in New City has recently been running a [#permalink]

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03 Nov 2017, 18:01
rsaahil90 wrote:
Hello

I am still not clear on who wins b/w A and D:
1. Option A - It tells a fact that is valid for subway tickets (always) - Closing on it saying that some tickets might already be purchased and 50% increase will not be immediately observed - OKAY
2. Option D - It tells that new jobs are added in suburban areas where subway doesn't work --> People change jobs to new jobs and hence the traffic in subway declines, does not translating to a 50% increase in revenue to counter costs --> This is an assumption of somewhat the same order as A, where we are assuming that new tickets will not be bought/tickets are not expired

Can you please elaborate on how to choose a winner in such confusing situations - I picked A as this was a general fact about subway tickets (even if prices are increased/decreased, how subway fares are pay does not change) --> This for sure might be referenced back to the action that chairperson wants to take, but with the assumption as is mentioned above.

Thank you

EMPOWERgmatAllenT wrote:
dheeraj24 wrote:
Hi, Could someone explain how option B weakens the conclusion.
I crossed off all the choices except B and D. But went with B
(or)
Can anyone explain whether my interpretation for eliminating choice B is correct.
On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares
Weakener : Even after increasing the bus fares from 25 to 40% in heavy traffic areas, there was a budget deficit .So increasing the fares upto 50% from original fare may/may not avert the crisis.

Hi Dheeraj24,

I'd be happy to answer your question, and also quickly break down why D is right, and the others are wrong.

The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

CONCLUSION: Increasing fares 50% will solve the 50% budget shortfall.

GOAL: Find 4 answers that Weaken, and find 1 that either Strengthens or does Nothing.

A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.
Weakens. This answer strongly suggests that some tokens would have already been purchased when the fare increase takes effect. Thus, the 50% fare increase would not be sufficient. Weaken.

B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.
The key issue with B is that it refers to NOW. If the SUBWAY fares go up by 50%, then the bus actually becomes a less expensive alternative, so subway riders might shift to buses. Thus, the 50% fare increase would not be enough. Weaken.

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.
Although the fares might generate more revenue, this answer points out that other revenue would be lost. Thus the 50% fare increase would not be enough. Weaken.

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.
The key issue here is ADDING jobs in other areas, not TAKING then from subway accessible areas. It doesn't matter what happens in other areas if it doesn't have an affect on the subway accessible areas. Therefore, this answer has ZERO effect on the proposal. Doesn’t weaken. Our right answer.

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward
The key word here is DEPEND. These people depend on something that will soon be banned from use on subways. The GMAT is a literal exam. On the GMAT the word “depend” means that these people HAVE TO use this technology. Which in turn means that they wouldn’t be able to use the subway. That strongly suggests that subway ridership is likely to drop pretty significantly. Thus, the 50% fare increase will not be enough. Weaken.

option A means subway riders actually buy tickets in advance. Such tickets have a lower price, and are not affected by the proposal => no additional revenues will be brought => A is wrong.

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Re: The subway system in New City has recently been running a   [#permalink] 03 Nov 2017, 18:01

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