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The subway system in New City

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The subway system in New City

by ankit0411 » Sun Sep 23, 2012 9:10 pm
The subway system in New City has recently been running a severe budget deficit. Analysts have concluded that, to avoid a crisis, subway revenues must increase by 50% from the current level, beginning with the coming quarter. Subway riders are currently charged a flat fare per ride; the chairperson of New City's transit authority has concluded that a 50% increase in this fare, effective at the beginning of the coming quarter, will be sufficient to avert any crisis.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT


A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward.

Please discuss each answer choice. OA to follow !
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by ananthrajavadhuta » Sun Sep 23, 2012 10:02 pm
B.

OA please.
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by ankit0411 » Sun Sep 23, 2012 10:30 pm
ananthrajavadhuta wrote:B.

OA please.
Please explain your reasoning behind it.
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by ananthrajavadhuta » Mon Sep 24, 2012 7:59 am
Here, Chairperson's conclusion is 50% increase in fare will cause 50% increase in revenue, thereby avoids crisis.

To weaken this conclusion, we need to find alternatives.

A. Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

If tokens are purchased now as against in the coming quarter and do not expire forever, revenues will not increase.

B.On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

If bus fares are 25 to 40 % greater than current subway fares, many people would obviously use buses instead of subways because new fare will be 50% more than current fare.

C.Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

Subway system may use its allocated tax money to avoid crisis. If more than 25% increase in fares causes reduction in amount of tax money allocated, then crisis cannot be avoided.

D.New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

If many people commute to suburban areas more than urban areas, there is a lot of potential to gain revenue. But, unfortunately, suburban areas are inaccessible by subway. So, crisis cannot be avoided.

E.Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward.

If many people use mobile phones while commuting, banning mobile phones will decrease the ridership significantly, thus reducing revenues.

Hope it helps. Please post OA and explanations if any.

Thanks.
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by ankit0411 » Mon Sep 24, 2012 8:18 am
ananthrajavadhuta wrote:Here, Chairperson's conclusion is 50% increase in fare will cause 50% increase in revenue, thereby avoids crisis.

To weaken this conclusion, we need to find alternatives.

A. Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

If tokens are purchased now as against in the coming quarter and do not expire forever, revenues will not increase.

B.On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

If bus fares are 25 to 40 % greater than current subway fares, many people would obviously use buses instead of subways because new fare will be 50% more than current fare.

C.Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

Subway system may use its allocated tax money to avoid crisis. If more than 25% increase in fares causes reduction in amount of tax money allocated, then crisis cannot be avoided.

D.New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

If many people commute to suburban areas more than urban areas, there is a lot of potential to gain revenue. But, unfortunately, suburban areas are inaccessible by subway. So, crisis cannot be avoided.

E.Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward.

If many people use mobile phones while commuting, banning mobile phones will decrease the ridership significantly, thus reducing revenues.

Hope it helps. Please post OA and explanations if any.

Thanks.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

We need to find an option which strengthens the conclusion.

Unfortunately, your pick is wrong. Let me wait for some more responses.
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by ice_rush » Mon Sep 24, 2012 8:56 am
We can quickly eliminate choices (C),(D) and (E) since they clearly weaken the plan. Between (A) and (B), I initially thought (B) weakened the statement, but after re-reading (A) I think (A) weakens the conclusion. If the tokens don't expire then essentially its a one time payment for the ticket and passengers can keep re-using the same ticket for multiple rides. Thus (A) weakens the plan.

That leaves us with (B).

What's the OA?
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by ananthrajavadhuta » Mon Sep 24, 2012 9:12 am
ankit0411 wrote:
ananthrajavadhuta wrote:Here, Chairperson's conclusion is 50% increase in fare will cause 50% increase in revenue, thereby avoids crisis.

To weaken this conclusion, we need to find alternatives.

A. Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

If tokens are purchased now as against in the coming quarter and do not expire forever, revenues will not increase.

B.On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

If bus fares are 25 to 40 % greater than current subway fares, many people would obviously use buses instead of subways because new fare will be 50% more than current fare.

C.Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

Subway system may use its allocated tax money to avoid crisis. If more than 25% increase in fares causes reduction in amount of tax money allocated, then crisis cannot be avoided.

D.New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

If many people commute to suburban areas more than urban areas, there is a lot of potential to gain revenue. But, unfortunately, suburban areas are inaccessible by subway. So, crisis cannot be avoided.

E.Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward.

If many people use mobile phones while commuting, banning mobile phones will decrease the ridership significantly, thus reducing revenues.

Hope it helps. Please post OA and explanations if any.

Thanks.

Each of the following, if true, calls into question the chairperson's conclusion EXCEPT

We need to find an option which strengthens the conclusion.

Unfortunately, your pick is wrong. Let me wait for some more responses.

Sorry I was confused. EXCEPT does not mean to do the opposite of what's stated :

EACH OF THE FOLLOWING, IF TRUE, CALLS INTO QUESTION THE CHAIRPERSON'S CONCLUSION EXCEPT means ALL THE FOUR OUT OF FIVE ANSWER CHOICES WEAKEN, BUT ONE ANSWER CHOICE DOES NOT. THAT ONE ANSWER CHOICE CAN EITHER STRENGTHEN OR JUST DOES NOTHING.

IMO C because no relationship is stated on how tax amount affects revenues.
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by ankit0411 » Mon Sep 24, 2012 9:43 am
Sorry I was confused. EXCEPT does not mean to do the opposite of what's stated :

EACH OF THE FOLLOWING, IF TRUE, CALLS INTO QUESTION THE CHAIRPERSON'S CONCLUSION EXCEPT means ALL THE FOUR OUT OF FIVE ANSWER CHOICES WEAKEN, BUT ONE ANSWER CHOICE DOES NOT. THAT ONE ANSWER CHOICE CAN EITHER STRENGTHEN OR JUST DOES NOTHING.

IMO C because no relationship is stated on how tax amount affects revenues.[/quote]


Mate, the answer is D

Lets wait for more responses
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by sana.noor » Thu Oct 04, 2012 11:52 pm
Its "D" because the new plan of increasing fare should not result into any crisis.....now the new jobs are opening in suburb area and no one can approach suburb area via subway because its not the route...so most of the people will not object on the high fare of subway, ultimately this will safe from any crisis.
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by Mission2012 » Sat Oct 06, 2012 12:35 am
I would go for "A".

A Subway fares are paid with single-ride tokens that are purchased in advance and do not expire.

As the tokens are single ride tokens, they would be consumed by traveler's within particular number of rides. Post that all the tokens bought would be on a 50% increased hike. Hence this information doesn't put the chairperson's assumption


B On the most heavily traveled routes in New City's downtown, express bus fares range from 25 to 40 percent greater than current subway fares.

reduction in tax money --> increase deficit

C Under New City's tax code, subway fare increases of more than 25 percent trigger reductions in the amount of tax money allocated to the subway system.

passengers will choose cheaper mode of transport --> reduction in revenue --> increase in deficit

D New City's economy is adding many more jobs in suburban areas, which are inaccessible by subway, than in the urban areas that the subway system serves.

More jobs in suburban areas which are less accessible by subway --> more people travelling to suburban areas than urban area --> reduction in revenue --> increase in deficit

E Mobile phones, upon which a significant percentage of New City's workers have come to depend for essential communication while commuting, will be banned on the subway from the coming quarter onward.

No mobile in subway --> less passengers choosing subway --> reduction in revenue --> increase in deficit
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