CAT Verbal Ability Questions | CAT Critical Reasoning questions
CAT/1999
Question . 11
Directions for Questions: Read the information in each question given below and answer the question that follows:
Three airlines IA, JA, and SA—operate on the Delhi-Mumbai route. To increase the number of seats sold, SA reduces the fare and this was emulated by IA and JA immediately. The general belief was that the volume of air travel between Delhi and Mumbai would increase as a result.
Which of the following, if true, would add credence to the general belief?
A : Increase in profitability of the three airlinesB : Extension of the discount scheme to other routesC : A study that shows that air travelers in India are price-consciousD : A study that shows that as much as 80% of air travel in India is company-sponsored
View Answer Explanatory Answer
Method of solving this CAT Verbal Ability Question from Critical Reasoning question
The 3 airlines decreased the fare with the belief that volumes will increase as a result. This can happen only if the customers are price-conscious.
Thus option c is correct