Last visit was: 19 Nov 2025, 16:08 It is currently 19 Nov 2025, 16:08
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
callmeDP
Joined: 25 Oct 2020
Last visit: 12 Dec 2022
Posts: 71
Own Kudos:
Given Kudos: 274
Status:No one but you matter
Location: India
Posts: 71
Kudos: 111
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,390
Own Kudos:
Given Kudos: 99,977
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,390
Kudos: 778,368
Kudos
Add Kudos
Bookmarks
Bookmark this Post
avatar
lunasol09
Joined: 28 Jun 2021
Last visit: 15 Oct 2021
Posts: 1
Given Kudos: 6
Location: United States
Posts: 1
Kudos: 0
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
krndatta
Joined: 09 Feb 2020
Last visit: 17 Oct 2024
Posts: 383
Own Kudos:
Given Kudos: 433
Location: India
Posts: 383
Kudos: 44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
KarishmaB Ma'am,
If we negate option B, we get Average price of hotels in Midvillee was significantly higher than other hotels. Doesn't this weaken the conclusion then that there might not be an increase in the number of tourists.
What do you think?
User avatar
krndatta
Joined: 09 Feb 2020
Last visit: 17 Oct 2024
Posts: 383
Own Kudos:
Given Kudos: 433
Location: India
Posts: 383
Kudos: 44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
KarishmaB Ma'am,
If we negate option B, we get Average price of hotels in Midvillee was significantly higher than other hotels. Doesn't this weaken the conclusion then that there might not be an increase in the number of tourists.
What do you think?
User avatar
Keshav1404
Joined: 11 Jun 2022
Last visit: 19 Nov 2025
Posts: 64
Own Kudos:
Given Kudos: 44
GMAT 1: 660 Q48 V32
GMAT 1: 660 Q48 V32
Posts: 64
Kudos: 18
Kudos
Add Kudos
Bookmarks
Bookmark this Post
KarishmaB

I have difficulty in assessment of the Option C & E, as both can potentially increase the amount of tax collected without increasing the number of the customer or the Average stay per person. As a normal case if tax is levied on the room charges, one can assume that the tax is also levied on the food bills. The amount of hotel stays remaining constant, if the substantial amount is spent on the food. We can say that the reduced tax collection from the Room charges were compensated by the Tax collection from the food bills.

Is there any flaw in my reasoning, or am i assuming too much to validate my reasoning? If so, how i can prefer the option C over option E.

Thanks in Advance.
User avatar
KarishmaB
Joined: 16 Oct 2010
Last visit: 19 Nov 2025
Posts: 16,267
Own Kudos:
77,001
 [2]
Given Kudos: 482
Location: Pune, India
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 16,267
Kudos: 77,001
 [2]
2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Keshav1404
KarishmaB

I have difficulty in assessment of the Option C & E, as both can potentially increase the amount of tax collected without increasing the number of the customer or the Average stay per person. As a normal case if tax is levied on the room charges, one can assume that the tax is also levied on the food bills. The amount of hotel stays remaining constant, if the substantial amount is spent on the food. We can say that the reduced tax collection from the Room charges were compensated by the Tax collection from the food bills.

Is there any flaw in my reasoning, or am i assuming too much to validate my reasoning? If so, how i can prefer the option C over option E.

Thanks in Advance.

I like the way you thought about it but here is the thing-
We are given that the hotel tax rate is 5% of room charges. Nothing is mentioned about hotel tax rate being levied on food in the hotel too. We are also assuming that people who stay in the hotel eat at the hotel which may not be the case. The argument only discusses the accommodation aspect and option (C) takes care of it very well.

Posted from my mobile device
User avatar
VerbalBot
User avatar
Non-Human User
Joined: 01 Oct 2013
Last visit: 04 Jan 2021
Posts: 18,830
Own Kudos:
Posts: 18,830
Kudos: 986
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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.
   1   2 
Moderators:
GMAT Club Verbal Expert
7443 posts
GMAT Club Verbal Expert
231 posts
189 posts