shovan85 wrote:IMO C

A says about service stations, what are the service stations meant for we are not sure. If I am correct service stations will provide services to the commuters who own vehicles. If this is the case then definitely there will be a decrease in number of customers as the price of Gasoline has increased. But this reasoning will be out of context.

hitmis wrote:

shovan85 wrote:IMO C

A says about service stations, what are the service stations meant for we are not sure. If I am correct service stations will provide services to the commuters who own vehicles. If this is the case then definitely there will be a decrease in number of customers as the price of Gasoline has increased. But this reasoning will be out of context.

About A, What I thought was that had the city council not planned a suspension of bus fares, daily commuters would have to use their cars. The stimulus says "commuters who drive to work in the center of the city are facing a large increase in transportation expenses ", so they would use their cars. This means they would spend at service stations (my understanding of them are servicing vehicles).
Since the commuters would be attracted to using the bus post the implementation of the plan, they will use their cars less and hence service stations would lose business. This would affect some portion of the economy, which is the concern of the city council to begin with.

hitmis wrote:Source Gmat club tests

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 local chain of service stations, which will see fewer customers during the daily commute.
Members of the bus drivers' union, who will be forced to add more routes and work longer hours.
The city council's budget, which will be unbalanced after receiving no revenue from transit fares for three months.
Commuters who already use public transportation daily and who will face crowded conditions and travel delays.
Commuters who do not live near public transportation routes and will not be able to take advantage of the suspended fares.

I picked a which was incorrect. I am not convinced why it isn't. I was torn between picking a and c but since the concern in the stimulus was about the economy I picked a