The Metroville Transit Authority’s bus from downtown Metroville to nei

Question

Which of the following most logically completes the passage?

The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where several stops will be added. Since the bus will pick up passengers making local trips on Main in addition to its Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s overall revenue, because __________.

A. the fare for a local trip on Main Street is less than the fare for a trip from Metroville to Crowestown
B. the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C. local passengers picked up by the Crowestown bus on Main Street would otherwise have taken other transit authority buses
D. the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E. the planned road repairs are expected to require several months to complete

Despite increased ridership, revenue will not increase...because??? i was looking for an increased cost in something
but there was none...Explanations please.

MacFauz · Accepted Answer

There are two situations where revenues can remain the same.
1) There are increased revenues and increased expenses which cancel out ech other.
2) There are no increased revenues at all.

Choice C is an illustration of the second situation.Lets say Transit Authority has two bus routes 1A - Metroville to Crowestown, 1B - Metroville Main Street

It clearly says that the people who are now travelling in 1A would have otherwise travelled by 1B. So anyway, the revenues would have come to the transit authority. Hence there would be no increase in revenues.

Kudos Please... If my post helped.

prasadkhadpe · Answer

Which of the following most logically completes the passage?

The Metroville Transit Authority’s bus from downtown Metroville to neighboring Crowestown is currently a nonstop 
service. Because of planned road repairs, the bus is going to be rerouted along Metroville’s Main Street, where 
several stops will be added. Since the bus will pick up passengers making local trips on Main in addition to its 
Crowestown passengers, its ridership will increase; but the rerouting will probably not increase the transit authority’s 
overall revenue, because __________.

A. the fare for a local trip on Main Street is less than the fare for a trip from Metroville to Crowestown
B. the Metroville Transit Authority will increase the number of trips the Crowestown bus makes per day
C. local passengers picked up by the Crowestown bus on Main Street would otherwise have taken other transit authority buses
D. the Metroville Transit Authority bus is the only way to get from downtown Metroville to Crowestown using mass transit
E. the planned road repairs are expected to require several months to complete

Despite increased ridership, revenue will not increase...because??? i was looking for an increased cost in something
but there was none...Explanations please.

C is correct...

gmatbull · Answer

These passengers are those who would otherwise have taken another bus belonging
to the same company....i.e still one of the Tansit Authority buses. 
No new passengers...
never read it that way...

Thanks Prasad

Cassiechina · Answer

I think A is correct. THE passage have told "its ridership will increase after rerouting". C is explaining the ridership may not increase,that is, C is against the premise in the passage. A is explaining that on the premise in the passage, the fare falls will also lead to revenue not to increase.

plumber250 · Answer

Hi Cassie,

I'm afraid that I agree with the others that C is correct.

A is tempting, however it does not say that the revenue will be the SAME as before.

If does tell you that the increase will be less than you might imagine, as the fare is lower. However if the extra passengers on the Bus are still paying extra, the revenue will still go up.

C gives an explanation for it staying the SAME - people get one of several buses already. This just means they change the bus they get, so no change in revenue.

Cheers,

James

JJakeRRoberts · Answer

But the passage already states that 'ridership will increase, "This increased ridership...". So, since the ridership has increased (as stated in the passage), A is the correct option. We should take what's stated in passage as true right?

lesliehwl · Answer

Here's an example: the original route costs $2, the local route costs $1
Ridership has risen from 5 to 15 
Revenue originally: 2*5=$10; revenue after, even assuming everyone pays for the cheaper fare $1= 1*15=$15. Clearly R2>R1. SO A is not always true

VerbalBot · Answer

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The Metroville Transit Authority’s bus from downtown Metroville to nei

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The Metroville Transit Authority’s bus from downtown Metroville to nei

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