LSAT 154 – Section 1 – Question 06

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Question
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Type Tags Answer
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Curve Question
Difficulty
Psg/Game/S
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Explanation
PT154 S1 Q06
+LR
+Exp
Resolve reconcile or explain +RRE
Causal Reasoning +CausR
Net Effect +NetEff
A
3%
152
B
0%
154
C
1%
150
D
94%
163
E
1%
155
131
139
146
+Easier 147.621 +SubsectionMedium

To discourage congestion, a city raised on-street parking rates in a downtown business district. For restaurants in the district, whose customers require short-term parking, the surprising result was a small increase in sales.

"Surprising" Phenomenon
Why did restaurants see an increase in sales when the city raised the rate on downtown parking?

Objective
The correct answer will be a hypothesis that explains why an increased short-term parking rate would help downtown restaurants, despite their customers needing short-term parking rate. The explanation must provide some rationale for why people are more likely to go to the restaurant despite higher parking costs.

A
Customers of the district’s businesses can also use private parking lots, which are generally more expensive than on-street parking.
We need to know why restaurants did better after the rate increase than before. These other lots are simply a constant that don’t factor into the apparent paradox.
B
Owners of the district’s businesses, for the most part, initially opposed the raising of the on-street parking rates.
It doesn’t matter what owners think of the new parking rate. We need to know why that rate had the effect it did.
C
Even before the change in parking rates, the staffs of the businesses in the district used only off-street parking.
If anything, this eliminates a possible explanation that the new rate freed up more parking for customers. We need something that explains why the new rate helped restaurants.
D
More expensive parking leads to greater turnover in cars parked in front of the businesses in the district.
Since the new rate leads to higher turnover, more people are parking in front of the restaurant than before. The restaurants thus have more potential customers throughout the day, hence why their profits have increased.
E
The business district is in competition with malls that offer free parking to their customers.
If anything, the new rate would seem to hurt the restaurants even more if customers had a free alternative elsewhere. This doesn’t explain how the new rate helped restaurants.

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