Hi All,
The Question follows,
Due to a sharp rise in the price of gasoline, commuters who drive to work in the center of the city are facing a large increase in transportation expenses that will limit the funds they have available to spend in other areas. In order to forestall a slowdown in the local economy, the city council has decided that fares on all forms of public transportation will be suspended for the next three months. Clearly, if commuters can get to work more cheaply, they will have more money left over to spend in other sectors of the economy, and the city's finances on the whole will not be negatively affected by higher gasoline prices.
If all of the statements above are true, which of the following is most likely to be damaged by the city council's plan?
A. A local chain of service stations, which will see fewer customers during the daily commute.
B. Members of the bus drivers' union, who will be forced to add more routes and work longer hours.
C. The city council's budget, which will be unbalanced after receiving no revenue from transit fares for three months.
D. Commuters who already use public transportation daily and who will face crowded conditions and travel delays.
E. Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.
OA C
When I am struck between C and E.
Could you pls help me how to select from this two ??
Thanks in advance
Regards,
Uva.
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Hi Uva@90,
The question to this CR prompts provides a HUGE hint as to what you should be looking for in an answer: who/what is likely to be DAMAGED by city council's plan. In other words, the plan is going to hurt someone or something. We need to understand the plan to figure out who/what will be hurt by it.
The entire situation is "causal" (meaning that one thing causes another thing to happen). The plan hinges on the city council's decision - the council has decided that FARES on ALL forms of PUBLIC TRANSPORTATION will be SUSPENDED for the next 3 MONTHS. This means that there will be NO MONEY COLLECTED on all forms of public transportation.
So, if now money is coming in from ANY form of public transportation, then who/what would be negatively affected?
Since you narrowed the choices down to C and E, I'll focus on those 2 options:
In C, the city council (and its budget) would CERTAINLY be affected, since there won't be any fares coming in for the next 3 months on public transportation. In E, we're dealing with commuters who DO NOT LIVE NEAR public transportation, so how would they be negatively affected if the transportation was suddenly free? Since they were not near the public transportation before the plan, and they're still not near it now, there's no real reason why they would be negatively affected.
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
The question to this CR prompts provides a HUGE hint as to what you should be looking for in an answer: who/what is likely to be DAMAGED by city council's plan. In other words, the plan is going to hurt someone or something. We need to understand the plan to figure out who/what will be hurt by it.
The entire situation is "causal" (meaning that one thing causes another thing to happen). The plan hinges on the city council's decision - the council has decided that FARES on ALL forms of PUBLIC TRANSPORTATION will be SUSPENDED for the next 3 MONTHS. This means that there will be NO MONEY COLLECTED on all forms of public transportation.
So, if now money is coming in from ANY form of public transportation, then who/what would be negatively affected?
Since you narrowed the choices down to C and E, I'll focus on those 2 options:
In C, the city council (and its budget) would CERTAINLY be affected, since there won't be any fares coming in for the next 3 months on public transportation. In E, we're dealing with commuters who DO NOT LIVE NEAR public transportation, so how would they be negatively affected if the transportation was suddenly free? Since they were not near the public transportation before the plan, and they're still not near it now, there's no real reason why they would be negatively affected.
Final Answer: C
GMAT assassins aren't born, they're made,
Rich
It looks like there can be disagreement. A council can generate additional revenue to compensate losses from reduced revenues from transportation. We don't know for sure that there is no plan to compensate. Also what percentage of the transportation revenue constitues council revenue. But this is a possibility.
Option E - May be people who not living close to public transportation are not intending to use the transportation at all. May be they are not travelling to city center for work.
Why not option - C. People who are already using public transportation will be affected. Either they will endure increased congestion. Or they will have to move to other modes of transport. So people who already use public transportation will defenitely be affected IMHO.
Option E - May be people who not living close to public transportation are not intending to use the transportation at all. May be they are not travelling to city center for work.
Why not option - C. People who are already using public transportation will be affected. Either they will endure increased congestion. Or they will have to move to other modes of transport. So people who already use public transportation will defenitely be affected IMHO.
