PT154.S1.Q6 > Question

SECTION 1 · lr

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SECTION 2 · lr

SECTION 3 · rc

PASSAGE 1

Question 1 Question 2 Question 3 Question 4 Question 5 Question 6

PASSAGE 2

Question 7 Question 8 Question 9 Question 10 Question 11 Question 12 Question 13

PASSAGE 3

Question 14 Question 15 Question 16 Question 17 Question 18 Question 19 Question 20

PASSAGE 4

Question 21 Question 22 Question 23 Question 24 Question 25 Question 26 Question 27

SECTION 4 · lr

Why did restaurants whose customers use short-term parking see an increase in sales when the city raised parking rates?

The correct answer will be a hypothesis that explains why an increased short-term parking rate helped downtown restaurants, despite their customers needing short-term parking. The explanation must result in people being more likely to go to restaurants as a result of higher parking costs. For example, perhaps the higher rate freed up parking spots that people would’ve otherwise occupied under the lower rate.

These other lots are simply a constant that don’t factor into the apparent paradox. They don't help us explain why restaurants did better after the rate increase.

It doesn’t matter what owners thought of the new parking rate. The rate went into effect, and we need to know why that rate had the result it did.

If anything, this eliminates a possible explanation that the new rate freed up more parking for customers. We need something that explains what changed for the new rate to help restaurants.

Since the new rate leads to higher turnover, more total people began parking in front of the restaurants than before. The restaurants thus had more potential customers throughout the day, which explains why their profits increased.

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.

PrepTest 154 - Section 1 - Question 6

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