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 other passengers.

Question

Quizplus · Accepted Answer

Students must have a more price-elastic demand for Amtrak train service, meaning they are more sensitive to price changes. By offering lower fares, Amtrak can attract more student passengers, increasing overall revenue and profits.

Amtrak Charges Lower Fares to Students Than to Its Other