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Difficulty: MediumCause and Effect Reasoning

Evaluate the two events described below to identify their causal relationship.

Event I: The metropolitan transit authority recently deployed a massive fleet of fully air-conditioned, highly subsidized electric buses across all major urban routes.
Event II: Private ride-hailing applications operating within the metropolitan area have reported an unprecedented 30% drop in passenger bookings over the last few weeks.

Which of the following logically explains the relationship between Event I and Event II?

  1. A
    Both Event I and Event II are separate effects resulting from independent causes.
  2. B
    Both Event I and Event II are parallel effects stemming from a common underlying cause.
  3. C
    Event II serves as the cause, and Event I is the logical effect of it.
  4. Event I serves as the cause, and Event II is the logical effect of it.Answer
  5. E
    Both Event I and Event II are independent causes of unstated phenomena.

Answer

The first event serves as the cause, and the second event is the logical effect.
The deployment of a cheap, comfortable public transit alternative directly causes a shift in consumer behavior, reducing the demand for more expensive private ride-hailing services. Therefore, the first event is the direct catalyst for the second.

Step-by-Step Solution

1
Analyze Event I to determine its nature and potential market impact.
Event I involves the introduction of a highly subsidized, comfortable public transportation option.
Understanding the characteristics of the new service helps predict how consumers will react to a cheaper travel alternative.
2
Analyze Event II to determine its nature and possible triggers.
Event II involves a sudden decrease in demand for private ride-hailing services.
Identifying that Event II represents a negative demand shift prompts a search for a substitute service that may have attracted these customers.
3
Evaluate the chronological and logical link between the two events.
The deployment of the subsidized buses acts as a highly attractive substitute, which logically leads consumers to abandon more expensive private taxis, resulting in the booking drop.
A direct cause-and-effect relationship is confirmed when one event logically and directly accounts for the occurrence of the other.

Key Concept

Evaluating causal links through economic substitution and chronological feasibility.
Estimated Time:1m 15s
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Topics

Cause and Effect Reasoning

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