Difficulty: Medium
Correct Answer: Only assumption I is implicit
Explanation:
Introduction / Context:
This practical reasoning question examines incentives and baseline conditions. A cab driver claims a faster trip for double the normal fare. Which assumptions must be true for the offer to make persuasive sense?
Given Data / Assumptions:
Concept / Approach:
The offer’s persuasive power depends on there being a meaningful time saving over the normal alternative. That is Assumption I. Assumption II is inconsistent with the seller’s proposition; he expects at least some passengers to pay more for speed.
Step-by-Step Solution:
Verification / Alternative check:
Negate I: If the normal journey is already quick, paying double offers no advantage; the sales pitch fails. Negate II: If some people will pay more for speed, the offer makes sense. The decision to propose double fare assumes at least some demand for faster service, not a blanket refusal.
Why Other Options Are Wrong:
Common Pitfalls:
Interpreting a market offer as requiring universal acceptance; in reality, it targets customers with higher time value.
Final Answer:
Only assumption I is implicit
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