Writing in 1849, Jules Dupuit Observed Why the Rail Companies

question 147

Multiple Choice

Writing in 1849, Jules Dupuit observed why the rail companies actively made third-class accommodations terrible, including removing the roof from the car and having nonupholstered seats:
"It is not because of the several thousand francs which they would have to spend to cover the third-class wagons or to upholster the benches that a particular railway has uncovered carriages and wooden benches; it would happily sacrifice this for the sake of its popularity. . . It hurts the poor not because it wants them to personally suffer, but to scare the rich."
How does "scaring the rich" illustrate price discrimination?

• A) It creates profit opportunities by bundling services.
• B) It deters those who are willing to pay more from going to third class.
• C) It uses tying to charge more for people who ride the train a lot.
• D) It encourages consumers with a low willingness to not travel at all.

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Definitions:

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The act of censoring or withholding one's own speech or written work to avoid offending others or infringing upon standards of propriety.

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Lucille Fay LeSeur

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Stage Name

A pseudonym used by performers and entertainers instead of their real name, often for easier recognition, branding, or privacy reasons.