Question

Amtrak charges lower fares to students than to its other passengers. This pricing strategy increases Amtrak's profits. From this information, we can conclude that students must have a _____ demand for Amtrak train service than do other passengers.

Answer 1

Answer: High price-elastic demand

Step-by-step explanation:

According to the question, the high price elastic demand basically measure the sensitivity of the quantity of the demand in which the price gets changed according to the actual demand of the products and the services in the market.

When the various types of factors such as price are refers as the elastic demand when the quantity of the products are get increase and the buyers demand of the products are gets high.

Therefore, In this given information we can easily conclude that the students are in high ecstatic demands for the train services.