A university decides to change its late night bus service between the campus and student housing from a fare- based service to a free service.This statement means that the incentive to ride the bus and the opportunity cost of a bus ride .The university's decision is a _ decision.

Question

Quizplus · Accepted Answer

By changing the fare-based service to a free service, the incentive to ride the bus increases since there is no cost to the student. This change affects the microeconomic behavior of individual students. The opportunity cost of a bus ride decreases since the student no longer has to pay for it. This is also a microeconomic effect. Therefore, the correct choice is C.

A University Decides to Change Its Late Night Bus Service