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CAT 2007 — DILR Question 14

Routes & NetworkEasy
Passage / Data

Answer the following question based on the information given below.

A low-cost airline company connects ten Indian cities, A to J. The table below gives the distance between a pair of airports and the corresponding price charged by the company. Travel is permitted only from a departure airport to an arrival airport. The customers do not travel by a route where they have to stop at more than two intermediate airports.

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The company plans to introduce a direct flight between A and J. The market research results indicate that all its existing passengers travelling between A and J will use this direct flight if it is priced 5% below the minimum price that they pay at present. What should the company charge approximately, in rupees, for this direct flight?

Answer & solution

  • A

    1991

  • 2161

  • C

    2707

  • D

    2745

  • E

    2783

Solution

The current market price paid by the customers is Rs. 2275 (A-H-J).

Therefore, the company should charge (2275 × 0.95) = Rs. 2161.25

Hence, option (b).

CAT 2007 DILR Q14: The company plans to introduce a direct flight between A and J. The market research results indicate that all — Solution | TheCATExam