According to the Tristate Transportation Authority, making certain improvements to the main commuter rail line would increase ridership dramatically. The authority plans to finance these improvements over the course of five years by raising automobile tolls on the two highway bridges along the route the rail line serves. Although the proposed improvements are indeed needed, the authority's plan for securing the necessary funds should be rejected because it would unfairly force drivers to absorb the entire cost of something from which they receive no benefit.
Which of the following, if true, would cast the most doubt on the effectiveness of the authority's plan to finance the proposed improvements by increasing bridge tolls?
(A) Before the authority increases tolls on any of the area bridges, it is required by law to hold public hearings at which objections to the proposed increase can be raised.
(B) Whenever bridge tolls are increased, the authority must pay a private contractor to adjust the automated toll-collecting machines.
(C) Between the time a proposed toll increase is announced and the time the increase is actually put into effect, many commuters buy more tokens than usual to postpone the effects of the increase.
(D) When tolls were last increased on the two bridges in question, almost 20 percent of the regular commuter traffic switched to a slightly longer alternative route that has since been improved.
(E) The chairman of the authority is a member of the Tristate Automobile Club that has registered strong opposition to the proposed toll increase.
This CR question is from GMATPrep test#1 but also appears in OG11(yellow). I hope that it is okay to post since it appears in GMATPrep. If not, please delete. But I would like to hear the answer for my questions below ;-)
I picked C but the answer is D.
OG explanation states that the revenue lost because of token hoarding is insignificant compared to the revenue over 5 yrs of increased tolls. But this explanation assumes that the increase is smaller than a certain percentage. I thought that we wouldn't allow to assume anything that is unstated.
On the other hands, choice D implies that it is likely that the % of automobiles go on that slightly longer route will be higher than the past one (almost 20%) because the road condition of the alternative route is better now.
So at the end, OG assumes that the loss in revenue due to what is mentioned in choice D is MORE than the loss in revenue due to what is mentioned in C. I am not sure why this kind of assumption is allowed...
This one is an official question, and so there is no point to argue its correctness. I just want to know what I should write down on my note about this question, so I won't fall into a similar trap (well, I am not sure what the trap is here too) GMAC setup.
Thanks in advance.