American Pacific Railroad has three fare levels-(from highest to lowest)-first class, coach, and student. Given that this pricing strategy has increased America Pacific's profits, one can conclude that students have _____ demand for America Pacific train service than other passengers.
A)an especially price sensitive
B)a lower
C)a greater
D)a less price sensitive

Question

Quizplus · Accepted Answer

The fact that American Pacific Railroad charges a lower fare for students suggests that they are more price-sensitive than other passengers. Therefore, they likely have a higher demand for discounts and lower fares.

American Pacific Railroad Has Three Fare Levels-(From Highest to Lowest)-First