Question

Statement: Every year, more tourists visit a coastal town than the year before, yet the number of hotels in the town has stayed the same. Which of the following conclusions is best supported?

• A. The town will soon build new hotels.
• B. Tourists prefer coastal towns to hill stations.
• C. The occupancy of the existing hotels is likely increasing.
• D. Hotel room prices in the town have fallen.

Hint:

Rising demand against a fixed supply of rooms pushes one measurable thing up.

Answer 1

The Correct Option is C

Hold supply constant and increase demand: the only forced consequence is that each hotel serves more guests, i.e. higher occupancy. The other options add outside information the statement does not provide.