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GMAT Verbal Reading Comprehension
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Author:  questioner [ Mon Mar 19, 2012 12:46 am ]
Post subject:  GMAT Verbal Reading Comprehension

US airlines have been suffering financial strain recently and are looking for new profit generators. The newest item of business: make ticket pricing complicated, so consumers have trouble figuring out what their trips actually cost.

The Department of Transportation has been bombarded by airlines asking for advertising rules to be changed so that some costs are not factored into the base price of a ticket. Instead, costs like fuel surcharges would be calculated later, making the original advertised price deceptive.

It's true that quoted fares have not been exact fares for quite some time now. Airlines are allowed to split out some government-imposed fees and taxes, but these costs must be shown in advertisements. Now, airlines want their own surcharges to be withheld from advertisements, and instead to present them only near the end of the purchasing process, where consumers may not have enough time to carefully consider prices.

If advertising rules change, fictional surcharges will surely emerge aimed at "lowering prices" obscuring the actual cost of fares. Competition among airlines for low fares could come to be based on surcharges, resulting in airlines falsely making their tickets appear cheaper than those of their competitors. In the end, consumers will lose the ability to make informed choices.

The passage suggests that, government-imposed surcharges
A. are an unnecessary burden on consumers.
B. regulate price differences among airlines.
C. create a confusing purchasing situation for consumers.
D. do not adequately cover the costs they aim to meet.
E. are added to base prices in an acceptable manner.


Correct Answer: E

--

The answer E means that the government surcharges are meant in order to base the prices in an acceptable manner. In other words, the gov surcharges are used to render the price more acceptable. Which I believe is wrong...

However, the text mentions: "Airlines are allowed to split out some government-imposed fees and taxes, but these costs must be shown in advertisements."
Meaning that the customer have to face two prices instead of one, which make him/her more confused than with only one...

Can you let me know what is wrong in this line of reasoning? (why is answer C incorrect)

Author:  Nick [ Mon Mar 19, 2012 12:48 am ]
Post subject:  Re: GMAT Verbal Reading Comprehension

The question asks specifically about government surcharges. According to the passage these are reasonable fees and are currently displayed in advertisements. The passage does not say that this is causing confusion, rather it says that confusion will arise if airlines are allowed to separate other surcharges from the base fare. It is important not to make any assumptions that are not stated in the passage (even if they are logical to you). The passage does not state that government fees currently cause confusion, therefore (C) is incorrect.

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