Amtrak charges lower fares to students than to its other passengers.This pricing strategy increases Amtrak's profits.From this information,we can conclude that students must have a _____ demand for Amtrak train service than do other passengers.

Question

Quizplus · Accepted Answer

The fact that Amtrak is able to charge lower fares to students suggests that they are more price-sensitive than other passengers, meaning their demand for the service is more price-elastic. This pricing strategy is profitable for Amtrak because the lower fares attract more students to ride the train, thereby increasing overall demand and revenue.

Amtrak Charges Lower Fares to Students Than to Its Other