The subway system in New City has recently been running a severe budge

Question

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

EMPOWERgmatAllenT · Accepted Answer

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.

getgyan · Answer

+1 D It is a non-strengthen question (I am not sure if it is called by this but I would like to call it that

) Premise - 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 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. A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire. (Weakens) 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. (Weakens) 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. (Weakens) 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. (No effect) 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 (Weakens) :-D

puneetgupta6 · Answer

It does figure that d has no effect on the conclusion above. but can you please elaborate on how E is weakening it? i found E to be completely out of scope and thus having no effect on the conclusion in a better way than D.

getgyan · Answer

Hi Puneet Good question. First of all, in questions like these we have to assume the options as correct and then proceed further. In option D it states that Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned. If it is a major loss to the commuters, they might want to find an alternative option like bus/private vehicles to commute so that they don’t have to incur a loss. If the commuters will stop travelling via subway this will imply further loss to the system. This weakens the conclusion that the crisis will be averted. Makes sense? :-D

maggie27 · Answer

Hi,
Can someone explain option B to me?

dheeraj24 · Answer

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. Thanks in advance.

ronr34 · Answer

Question here if I may....
If adding more jobs in areas which are inaccessible by subway, and not knowing that the population doesn't grow, can we speculate that some of the people now going to work will start going to different areas, ones that aren't accessible by subway, and thus the subway will loose some if it's commuters?
Where's the flaw in this logic?

EMPOWERgmatAllenT · Answer

Hi maggie27,

Sure, I'd be happy to help. I'm copying you here on my post from just a few minutes ago as to why B is wrong:

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.

cledgard · Answer

You could be right; “some of the people now going to work will start going to different areas, ones that aren't accessible by subway, and thus the subway will lose some if it's commuters.” However, that does not mean that the  old jobs in the accessible areas  are no longer available; thus,  other people will get these jobs  and  there will be no loss.

Hence choice D does not weaken.

abhishekdadarwal2009 · Answer

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.

Lucy Phuong · Answer

Just countered this question from MCAT. To me, this is a tough CR question.

OFFICIAL EXPLANATION:

(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.

Damion123 · Answer

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

Premises: Subway system NC has deficit,hence to avoid crisis proposes to increase fares by 50% in nest Qtr. 
Conclusion: 50% Increase will sufficient to aver crisis.

Except Question for Weaken hence we need Ans choice which strengthen or does not impact at all to the conclusion that 50% Increase will sufficient to aver crisis.

(A) Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.  Weaken. riders will buy tokens in advance before hike in rates.

(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.  Weaken. Riders will switch to Buses as after hike Buses will be cheaper option than 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.  Weaken. Increase in revenue will be offset by reduction in amount of allocated to the subway system. So net impact may be Zero or negative or positive. Hence can't be ans choice.

(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.  So what??? We are not bothered about Jobs in Suburb or Urban area.

(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.  Weaken as riders will not prefer Subway.

Correct Ans: D

dcummins · Answer

Conclusion: Increasing fares 50% will solve the 50% budget shortfall.
Assumptions: There will be no drop in ridership.
Premises: to avoid a crisis an increase by 50% from the current level is required

Method of answering. If an answer choice weakens the conclusion write YES next to it otherwise right NO

A - Does it Weaken? Yes
Why? Because people can buy well in advance of the introduction of the fare increase next quarter

B- Does it Weaken? Yes
Why? Because the price increase of 50% of the train line is more expensive than the most heavily travelled non-train routes. So our key assumption is jeopardized as it is likely that ridership will drop.

C- Does it Weaken? Yes
Why? Because the 50% increase exempts the rail system from tax allocations, thus reducing existing funding pools.

D - Does it Weaken? No
Why? Because people in suburbia don't catch the train and don't form part of our ridership assumptions. We don't care about non-city people as they never caught the train to begin with.

E- Does it Weaken? Yes
Why? Because if commuters "depend" on mobiles for communication while travelling then it is likely they'll divert to alternate modes of transport to maintain this dependency; thus, our revenue will be jeopardized.

ArupRS · Answer

nightblade354

I don't understand how E is related tot he conclusion. I can understand there will be negative impact that may reduce the number of commuters, but don't we need to think from the point of view of increase in fear?

Please explain.

Regards,
Arup Sarkar

nightblade354 · Answer

ArupRS ,

With except questions, the LSAT being notorious for them, we are left with a little wiggle room. You hit on some great points, which are correct, but remember the question type and source. Although this question does seem a little bit too unGMAT like, I think it is still reasonable to find the right answer. Let's examine (D) and (E)

(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. --  Our conclusions says that we will avoid a crisis if we raise priced, but this says more jobs will be made in other areas of the cities. Cool, but this really doesn't help our argument. The same number of people are still traveling the line, but fewer new jobs are being added (This is not a reduction). So this does nothing for our argument and is, indeed, the answer. Think about in number terms; we are told that 100 ride the train, but now out of 100 additional possible riders, we only get 25 new ones. Well, these are still new ones, right? We are still adding to our total.

(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 --  A tricky one as well, because by GMAT standards this is not a good answer. We are being forced to assume that the workers will not use the train because they are being forced to not use the phones that they depend on. I admit this is a stretch, but we are given some leniency with these types of questions. (D) is clearly unrelated to our argument in every possible way, whereas this answer attempts to, weakly, show that there is a possibility that the plan will not work. That is the difference between the two answers. One attempts to show a weakness, while another gives a completely inconsequential argument.

VerbalBot · Answer

Hello from the GMAT Club VerbalBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.

The subway system in New City has recently been running a severe budge

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Critical Reasoning (CR) Questions

The subway system in New City has recently been running a severe budge

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards