Dear All,
I agree with choice (A). The official explanation is as follows:
The meaning of the original sentence is clear: If passengers are not deterred by a significant fare increase, the airline industry must be doing well. The original sentence also uses concise language ("price-sensitive passengers") to make its point. Additionally, the pronoun "it" in the original sentence clearly refers to the fact that passengers are not deterred by a significant fare increase.
(A) CORRECT. This choice is correct as it repeats the original sentence.
(B) This choice incorrectly replaces the concise phrase "price-sensitive passengers" with the wordy alternative "passengers who are price-sensitive."
(C) In this choice, the pronoun "it" is used initially to refer to a fare increase. In the non-underlined
portion of the sentence, a second "it" is used to refer not to a fare increase, but to the fact that a fare increase does not deter price-sensitive passengers. The use of the pronoun "it" is incorrect in this answer choice as it causes the antecedent to be unclear for the second "it" in the non-underlined portion of the sentence. Also, "acting as a deterrent" is unnecessarily wordy, and the use of the term "may raise" suggests that the airlines are being given permission to increase their fares.
(D) In this choice, the pronoun "it" is used initially to refer to a fare increase. In the non-underlined portion of the sentence, a second "it" is used to refer not to a fare increase, but to the fact that a fare increase does not deter price-sensitive passengers. The use of the pronoun "it" is incorrect in this answer choice as it causes the antecedent to be unclear for the second "it" in the non-underlined portion of the sentence. Also, the use of the term "may raise" suggests that the airlines are being given permission to increase their fares.
(E) In this choice, the pronoun "it" is used initially to refer to a fare increase. In the non-underlined portion of the sentence, a second "it" is used to refer not to a fare increase, but to the fact that a fare increase does not deter price-sensitive passengers. The use of the pronoun "it" is incorrect in this answer choice as it causes the antecedent to be unclear for the second "it" in the non-underlined portion of the sentence.