|
1)The surge in bus passengers indicates that the demand for bus transportation is price sensitive.i.e the elasticity is quite high.
I thought that 'taking bus' is such a 'necessity' that the public would not react much towards it. Did the outcome indicate that there is actually quite a large percentage of population for whom the expenses on public tranportation is not minimal?
2) As there are a lot of people taking buses, people need to wait longer to get on and the buses became very crowdy. This should be an increase of the 'cost' of taking bus and the demand shall thus be adjusted by the curve shifting leftwards.
But such adjustment was not obvious and effective for this case.
Is it because of the absence of close substitute?-->Taking taxi is too expensive.If not by bus, people have few alternatives.
|