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by GmatKiss » Fri Mar 09, 2012 9:15 am
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.


Please explain in detail
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Source: — Critical Reasoning |

by shekhar.kataria » Fri Mar 09, 2012 9:59 am
I was confused between A and C and that led me to search this question on other sources.

Here is what Ron Says about this Question:
https://www.manhattangmat.com/forums/due ... 12234.html.



Gmatkiss, what is the source of this question ??
Restlessness and discontent are the first necessities of progress.--Thomas A. Edison

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by Gaurav 2013-fall » Fri May 18, 2012 7:59 am
IMO C
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by ice_rush » Fri May 18, 2012 2:52 pm
(C) it is for me.
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by GmatKiss » Sat May 19, 2012 1:18 am
OA: C
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by ramprakaashk » Mon May 21, 2012 5:39 am
IMO : D .. not C becasue the stimulus believes that city economy will improve.
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