Tourists have long complained that hotel accommodations in Midville ar

Question

Tourists have long complained that hotel accommodations in Midville are too expensive. Starting last year, the city council, hoping to attract more tourists, lowered the hotel tax rate to 5 percent of room charges. By the end of last year, Midville had taken in no less money from hotel taxes than it did the year before, so an examination of the hotel records will show that more tourists stayed in city hotels last year than the year before.

Which of the following is an assumption on which the argument depends?

Decrease in hotel prices b/c of complaints.
Taxes rate decreased
Tax revenue remained the same.
Therefore, more tourists stayed.

Find the assumption to make the conclusion true.

A. The tourists who stayed in Midville hotels last year were aware that the hotel tax rate had been lowered.
This has no bearing on the outcome on whether tourists stayed.

B. The average price of hotel accommodations in Midville was not significantly higher than in hotels in other cities either last year or the year before.
Other cities? We don't care about the relative comparisons of this tourist extraction to others.

C. In Midville, the price of a hotel room before taxes was not significantly higher last year than it had been the year before.
Yes. If the prices were constant from Year to Year, and the taxes decreased Year to Year, then we can assume that more people came into the hotel Last Year compared to the year before.

D. There were significantly more efforts to publicize Midville as a tourist destination last year than there had been the year before.
Publicizing tourist destinations does not necessarily mean more people coming.

E. On average, tourists in Midville did not spend significantly more on meals last year than they did on hotel accommodations.
Spending $ on meals? How does that impact more tourists coming?

winterschool · Answer

Tourists have long complained that hotel accommodations in Midville are too expensive. Starting last year, the city council, hoping to attract more tourists, lowered the hotel tax rate to 5 percent of room charges. By the end of last year, Midville had taken in no less money from hotel taxes than it did the year before, so an examination of the hotel records will show that more tourists stayed in city hotels last year than the year before.

Which of the following is an assumption on which the argument depends?

A. The tourists who stayed in Midville hotels last year were aware that the hotel tax rate had been lowered.  Incorrect

it doesnt matter, if hotel price was increased

B. The average price of hotel accommodations in Midville was not significantly higher than in hotels in other cities either last year or the year before.  Incorrect

not helpful to explain why more tourists stayed in city hotels?

C. In Midville, the price of a hotel room before taxes was not significantly higher last year than it had been the year before.  Correct

so need more tourist to fulfil last years tax revenues

D. There were significantly more efforts to publicize Midville as a tourist destination last year than there had been the year before.  Incorrect

weakens argument, tax is not only factor to increase tourist

E. On average, tourists in Midville did not spend significantly more on meals last year than they did on hotel accommodations.  Irrelevant

not helpful

DinoPen · Answer

Tourists have long complained that hotel accommodations in Midville are too expensive. Starting last year, the city council, hoping to attract more tourists, lowered the hotel tax rate to 5 percent of room charges. By the end of last year, Midville had taken in no less money from hotel taxes than it did the year before, so an examination of the hotel records will show that more tourists stayed in city hotels last year than the year before.

Which of the following is an assumption on which the argument depends?

Decrease in hotel prices b/c of complaints.
Taxes rate decreased
Tax revenue remained the same.
Therefore, more tourists stayed.

Find the assumption to make the conclusion true.

A. The tourists who stayed in Midville hotels last year were aware that the hotel tax rate had been lowered.
 This has no bearing on the outcome on whether tourists stayed.

B. The average price of hotel accommodations in Midville was not significantly higher than in hotels in other cities either last year or the year before.
 Other cities? We don't care about the relative comparisons of this tourist extraction to others.

C. In Midville, the price of a hotel room before taxes was not significantly higher last year than it had been the year before.
 Yes. If the prices were constant from Year to Year, and the taxes decreased Year to Year, then we can assume that more people came into the hotel Last Year compared to the year before.

D. There were significantly more efforts to publicize Midville as a tourist destination last year than there had been the year before.
 Publicizing tourist destinations does not necessarily mean more people coming.

E. On average, tourists in Midville did not spend significantly more on meals last year than they did on hotel accommodations.
 Spending $ on meals? How does that impact more tourists coming?

sujaygmat · Answer

What this statement means?
Does it say, Midville took same amount of money both the years(from hotels)?

anjanita · Answer

The Answer is C

Below is my line of reasoning:

The hotel had equal revenue in both years
But it is said that the taxes were lowered, so, that means either 1. more people came to stay or 2. the money spent/per person was more

For 1 to be true, 2 has to be denied

C does that and therefore, C is the answer.

RohiniK · Answer

Yes you are right sujaygmat

It means that the price of the hotel room was same or not significantly different for both the years. That means the tourists felt that this year the accommodation is not expensive this year because the government has declared a 5% reduction in tax rate.

Let's assume the price of a hotel room before taxes was not significantly higher last year than it had been the year before.
Example - Let's say the hotel accommodation for both years is $100 per night (since prices are not significantly different we can assume the same price). And government tax last year was 15% and this year it is lowered by 5% that is the tax for this year is 10%
Total accommodation this year = $100 + %10 = $110
Total accommodation last year = $100 + %15 = $115

Now let' assume the price of a hotel room before taxes was significantly higher last year than it had been the year before.
Example - Let's say the hotel accommodation for this year is $100 per night and last year it was $110 per night. And government tax last year was 15% and this year it is lowered by 5% that is the tax for this year is 10%
Total accommodation this year = $100 + %10 = $110
Total accommodation last year = $150 + %15 = $172.5

SahilBhaia · Answer

Can somebody explain why is the 1st option incorrect? If people are aware of the tax reduction, more people will come.

VerbalBot · Answer

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Tourists have long complained that hotel accommodations in Midville ar

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Tourists have long complained that hotel accommodations in Midville ar

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