Most large public transit systems charge lower rider fares to senior citizens, students, and children. If this pricing strategy increases the profits of the transit system, we can conclude that individuals in the reduced fare categories have _____ demand for public transit service than other passengers have.
A)a greater
B)a lower
C)an especially price sensitive
D)a price insensitive

Question

Quizplus · Accepted Answer

Individuals in the reduced fare categories likely have an especially price sensitive demand for public transit service, which is why offering lower fares to these groups can increase overall profits by encouraging more ridership among them.

Most Large Public Transit Systems Charge Lower Rider Fares to Senior