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In an attempt to check its increasing pollution, Litter City has introduced a levy of ₹100 on every private car entering the city. The administration argues that the imposition of this levy, in addition to the existing toll at the entrance of the city, will switch people from using their cars to using public transport. Which of the following, if true, provides the best evidence that the city administration's argument is flawed?

1. The city administration is already facing the ire of taxi drivers whose demand for a rate hike was turned down by the administration.
2. A recent survey has shown that people living in Litter City have fewer cars than those in the neighboring clean city.
3. Hardly 10% of the regular bus passengers own their own cars.
4. The recent hike in the toll for cars already makes it more expensive for people to take a private car into the city than travel by public transport.

Correct answer: The recent hike in the toll for cars already makes it more expensive for people to take a private car into the city than travel by public transport.

Solution

The administration's argument assumes that the new levy will shift people from cars to public transport. If car travel is already more expensive than public transport, then the levy is unlikely to cause the claimed shift, making the argument flawed.

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