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 _____ demand for bus service than other passengers.

Question

Quizplus · Accepted Answer

The pricing strategy suggests that senior citizens have a more elastic demand for bus service, meaning they are more sensitive to price changes. Lower fares likely increase ridership among seniors, thus increasing overall profits.

The City Bus System Charges Lower Fares to Senior Citizens