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ProhibitionLand!!

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by parallel_chase » Tue Sep 23, 2008 3:43 pm
The people of Prohibitionland are considering banning the service of alcoholic beverages in restaurants to curb unruly behavior on the part of its residents. Proprietors of restaurants in Prohibitionland are protesting the ban on the grounds that it will reduce their revenues and profits. However, several provinces in Prohibitionland enacted restrictions on alcoholic beverages last year, and the sales taxes paid by the restaurants in those provinces rose by an average of 50 percent. In contrast, the sales taxes paid by restaurants located in areas of Prohibitionland that did not have any restrictions rose by an average of 30 percent.

Which of the following, if true, supports the restaurant proprietors' economic stance against the ban?

A In the provinces that restricted alcoholic beverages, there was a short-term negative impact on restaurant visitation in the beginning of last year.

B The sales tax in Prohibitionland is lower on food and beverages than it is on other consumer goods, such as clothing.

C The consumption of alcoholic beverages in Prohibitionland has been on a gradual decline the last 20 years.

D The restrictions on alcoholic beverages enacted last year allowed for the service of drinks beginning around dinnertime each evening.

E Overall sales tax revenue did not increase at a substantially higher rate in the provinces that enacted the restrictions on alcoholic beverages than in the rest of Prohibitionland last year.
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Source: — Critical Reasoning |

by uad105128 » Tue Sep 23, 2008 4:08 pm
IMO D. What is OA?
To move or not to move! The question is what moves you!
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by uad105128 » Tue Sep 23, 2008 4:08 pm
IMO D. What is OA?
To move or not to move! The question is what moves you!
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by csandeepreddy » Tue Sep 23, 2008 4:10 pm
i will go with D
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by banker1 » Tue Sep 23, 2008 5:18 pm
I think we can agree (A), (B), and (C) are out of scope.

I was stuck between (D) and (E). I eliminated (E) because it is slightly out of scope. It talks about overall sales tax when the passage talks specifically about sales taxes paid by restaurants.

What is the OA?
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by nervesofsteel » Tue Sep 23, 2008 11:20 pm
yes it should be D
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by raunekk » Tue Sep 23, 2008 11:49 pm
imo:D
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by welett » Wed Sep 24, 2008 12:00 am
E

salex tax doesnt increase means less units sold in places where tax is higher.
from this we can infer that as tax increases sales decrease

for D, it doesnt say anything about numbers imho.
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by parallel_chase » Wed Sep 24, 2008 4:58 am
OA - D


Thanks for your responses.
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D is the answer

by gmat740 » Sun Mar 01, 2009 2:25 am
I am very sure D is the answer
All the rest are out of scope,I think this is not a tough question as it was termed as
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by mmslf75 » Fri Jan 08, 2010 12:19 am
gmat740 wrote:I am very sure D is the answer
All the rest are out of scope,I think this is not a tough question as it was termed as

I have done a similar question, similar line of reasoning.

IMO D

OA ??
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by ssgmatter » Sun May 16, 2010 5:44 am
why E is wrong?.....Can anyone please explain I am not clear on this one...

Thanks in advance!!
Best-
Amit
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by paes » Sun May 16, 2010 10:35 pm
between D and E :

E : out of scope because it is talking to the overall sales tax, not only for the sales tax given by restaurants' owners

So answer should be D

See, the key is :

... banning the alcoholic beverages in RESTAURANTS TO CURB UNRULY behavior.
So as D says, if the drink is going to serve in home then it means that the objective 'CURB UNRULY BEHAVIOR' is not going to fulfill.

Thus it is supporting to the restaurant owners demand against the ban.
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