Most Passenger Trains Operate Far Below Full Capacity

question 68

Multiple Choice

Most passenger trains operate far below full capacity. Under what circumstances would reducing travel fares be likely to increase total revenue?

• A) if demand is unit inelastic
• B) if demand is inelastic
• C) if demand is unit elastic
• D) if demand is elastic

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Definitions:

Insight

The ability to understand the inner nature of things or a deep understanding of a person or situation, often leading to a sudden clear solution after a period of confusion.

Learning Set

The ability to become more efficient in learning new tasks based on experiences gained from learning previous tasks.

Response Set

A tendency for a person to respond to questions or situations in a patterned way, often based on habit or bias rather than thoughtful consideration.

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, emphasizing the effect of consequences on future behavior.