Question

A mass transit authority charges bus fares of $1.25 during morning rush hours but only $1.00 during late morning non-rush hours. Economists explain the fare difference by the fact that the demand for bus rides during the morning rush hours is ________ but during the late morning it is ________.

Answer 1

Value flexibility of interest estimates the responsiveness of amount requested to changes in cost of the great. Value versatility of interest = rate change in amount requested/rate change in cost If the total worth of value flexibility is more noteworthy than one, it implies request is versatile . Flexible interest implies that amount requested is touchy to value changes . Request is inelastic if a little change in cost has practically no impact on amount requested. The outright worth of flexibility would be short of what one A higher admission can be charged in the cash since request is inelastic as individuals would be eager to will work early. On the off chance that a more exorbitant cost is charged there would be practically no adjustment of the amount requested. this isn't the situation in the evening. this prompts a lower cost in the evening

Answer 2

more inelastic

more elastic

Step-by-step explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

A higher fare can be charged in the money because demand is inelastic as people would be in a rush to get to work early. If a higher price is charged there would be little or no change in the quantity demanded. this is not the case in the evening. this leads to a lower price in the evening