Critical Reasoning: Airline Fares
CAT 1999 Slot 1 · Verbal Ability & Reading Comprehension · Easy · Verbal Ability
This is an easy Verbal Ability & Reading Comprehension question from the CAT 1999 Slot 1 paper. It tests Verbal Ability. The full answer key and a step-by-step explanation are below — try it yourself first, then reveal the solution.
Three airlines — IA, JA and SA — operate on the Delhi- Mumbai route. To increase the number of seats sold, SA reduced its fares 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 airlines.
- B.
Extension of the discount scheme to other routes.
- C.
A study that shows that air travellers in India are price-conscious.
- D.
A study that shows that as much as 80 per cent of air travel in India is company-sponsored.
C
Explanation
If air travellers are price-conscious, a reduction in fares will lead to an increase in the volume of air travel, thereby supporting the general belief.
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