Consider the following argument:
City Council Member: Our city's public transit system is currently operating at a significant financial deficit. To eliminate this deficit, the transit authority has proposed a 20 percent increase in all bus and subway fares. However, our studies indicate that this fare increase will cause a 25 percent drop in total ridership as commuters switch to other modes of transportation. Therefore, implementing the fare increase will actually worsen the transit system's financial deficit rather than eliminate it.
The argument above necessarily assumes that the transit system's operating costs will not decrease sufficiently to offset the lost revenue when ridership drops by 25 percent.
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True
The statement is a strictly necessary assumption because the argument equates a loss in revenue with an increased deficit. This jump in logic requires the author to assume that operating costs will not drop enough to offset the lost revenue. If we negate the assumption and imagine that costs DO drop significantly alongside ridership, the conclusion fails.
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Necessary Assumptions and the Negation Test