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The transit authority of a certain city announced plans for a daily subway pass, which would cost $2.50 and afford a passenger unlimited access to the subway over a twenty-four-hour period. A consumer advocate was unimpressed with this offer because it benefited only tourists and did nothing for the average city commuter, who rides the subway only to and from work each business day.

it indicates offer doesnt make sense with daily commuters

If each of the statements above is true, which of the following conclusions can be drawn about the city's subway system?

A. The transit authority's special committee will weigh the merits of the day pass when it reconvenes.

B. The average commuter is dissatisfied with the price of the subway and is turning to other methods of transportation.

C. Discounting the day pass would put a strain on funds normally reserved for emergency measures.

D. The cost of one ride on the subway, regardless of the length of the ride or the time of day, is no more than $1.25
D makes sense and fits as thought

E. A four-day pass at a cost of $10 would be equally useful to tourists.
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The transit authority of a certain city announced plans for a daily subway pass, which would cost $2.50 and afford a passenger unlimited access to the subway over a twenty-four-hour period. A consumer advocate was unimpressed with this offer because it benefited only tourists and did nothing for the average city commuter, who rides the subway only to and from work each business day.

So, this is an inference question and we have to conclude based on what's given in the passage.

If each of the statements above is true, which of the following conclusions can be drawn about the city's subway system?

A. The transit authority's special committee will weigh the merits of the day pass when it reconvenes. : Nothing is mentioned in the argument about how a special committee will weigh the merits. Incorrect

B. The average commuter is dissatisfied with the price of the subway and is turning to other methods of transportation. : Its is given that the average city commuters are not happy but we cannot conclude that those commuters will turn to other methods of transportations. Incorrect

C. Discounting the day pass would put a strain on funds normally reserved for emergency measures. : Nothing is mentioned about fund reserved for emergency reserve: Incorrect

D. The cost of one ride on the subway, regardless of the length of the ride or the time of day, is no more than $1.25 : Correct: If the cost we more than $1:25 for one way, 2-way ride would cost more than $2.50. And then the pass would have been helpful to offset some cost.

E. A four-day pass at a cost of $10 would be equally useful to tourists. Incorrect: We cannot conclude this based on the argument as a tourist may visit for just one day, then the four day pass will not be helpful.

IMO D is correct
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The transit authority of a certain city announced plans for a daily subway pass, which would cost $2.50 and afford a passenger unlimited access to the subway over a twenty-four-hour period. A consumer advocate was unimpressed with this offer because it benefited only tourists and did nothing for the average city commuter, who rides the subway only to and from work each business day.

If each of the statements above is true, which of the following conclusions can be drawn about the city's subway system?

A. The transit authority's special committee will weigh the merits of the day pass when it reconvenes. -> It is irrelevant, as the two statements are never directing to a committee opinion.

B. The average commuter is dissatisfied with the price of the subway and is turning to other methods of transportation. -> We cannot conclude the satisfaction or dissatisfaction of average commuter. Incorrect.

C. Discounting the day pass would put a strain on funds normally reserved for emergency measures. -> It is too extreme from the two statements provided. Irrelevant.

D. The cost of one ride on the subway, regardless of the length of the ride or the time of day, is no more than $1.25 -> We have daily fare $2.5 and working class feels it is more suitable for tourists. So, half of daily fare that is $1.25 is highest fare in one way. Let's keep it.

E. A four-day pass at a cost of $10 would be equally useful to tourists. -> We don't know that, if a tourist is planning for 2 days trip only, then $10 won't be useful. Incorrect.

So, I think D. :)
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Only logical conclusion that can be drawn is D. Thinking from city's perspective cost of unlimited daily pass at $2.50 is justified only if cost of one-way ride is $1.25.
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