Critical Reasoning

NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.

Which of the following, if true, would most help to explain NorthAir's decision in light of its objectives?

(A) None of NorthAir's competitors offers significantly better seating and service to economy-class passengers than NorthAir does.
(B) On many of the routes that NorthAir flies, it is the only airline to offer direct flights.
(C) A few of NorthAir's economy-class passengers are satisfied with the service they receive, given the low price they pay.
(D) Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.
(E) The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.

OA: E

Hello, Experts. Could anyone please, elaborate on striking off option D? Thanks.

lionsshare wrote:NorthAir charges low fares for its economy-class seats, but it provides very cramped seating and few amenities. Market research shows that economy passengers would willingly pay more for wider seating and better service, and additional revenue provided by these higher ticket prices would more than cover the additional cost of providing these amenities. Even though NorthAir is searching for ways to improve its profitability, it has decided not to make these improvements.

Which of the following, if true, would most help to explain NorthAir's decision in light of its objectives?

(A) None of NorthAir's competitors offers significantly better seating and service to economy-class passengers than NorthAir does.
(B) On many of the routes that NorthAir flies, it is the only airline to offer direct flights.
(C) A few of NorthAir's economy-class passengers are satisfied with the service they receive, given the low price they pay.
(D) Very few people avoid flying on NorthAir because of the cramped seating and poor service offered in economy class.
(E) The number of people who would be willing to pay the high fares NorthAir charges for its business-class seats would decrease if its economy-class seating were more acceptable.

OA: E

Hello, Experts. Could anyone please, elaborate on striking off option D? Thanks.

We know that if NorthAir provided better seating and amenities, it could charge higher prices for its economy class seats. We also know that the additional revenue from the higher prices would more than cover the costs of the better amenities. We're trying to understand why NorthAir, which wishes to improve profitability, would still refuse to provide these amenities given these facts.

D doesn't help us understand their motivation. Even if people aren't avoiding the airline because of the cramped eating, the change can still be profitable, as we're told that the higher ticket prices will more than cover the expense of the improved amenities. Put another way, the airline wouldn't be implementing the changes to persuade more people to fly with them but rather to justify higher ticket prices.

E, on the other hand, gives us a very good reason for the airline to be reluctant to upgrade its economy seating. It such an upgrade will hurt its revenue from business-class ticket sales, it's possible that the net effect would be to decrease the Airline's overall profits.