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Scenario 11.1 Use the Following to Answer the Questions

question 338

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Scenario 11.1
Use the following to answer the questions.
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound bus line, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on a NeOn bus from Buffalo, New York, to New York City is $50.00 round trip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way.
Refer to Scenario 11.1. When Greyhound launched the BoltBus and NeOn bus lines, this is an example of

Definitions:

Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, leading to a stable market condition.

Demand

The amount of a product or service that buyers are ready and capable of buying at different price points.

Public Utilities

Companies that provide essential services such as water, electricity, and telecommunications to the public, often under government regulation.

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons.