The city bus system charges lower fares to senior citizens than to other passengers.Assuming that this pricing strategy increases the profits of the bus system, we can conclude that senior citizens must have a _______ for bus service than other passengers.

Question

Quizplus · Accepted Answer

Senior citizens likely have a more elastic demand for bus service, meaning their demand is more sensitive to price changes. Lower fares for seniors likely attract more of them to use the service, increasing overall profits if their demand significantly responds to the lower prices.

The City Bus System Charges Lower Fares to Senior Citizens