After a recent study showed significant benefits to the use of public transportation
After a recent study showed significant benefits to the use of public transportation, government officials have hired your consulting firm to increase the use of public transportation. In the initial meeting between the government officials and your consulting firm, some ideas for increasing demand were discussed. Three of those suggestions are listed below.
Suggestion 1. Reduce the price of public transportation
Suggestion 2. Increase the price of private transportation by increasing tolls
Suggestion 3. Offer monthly and yearly passes that reduce the price paid per ride
Based on your knowledge of the law of demand, which suggestions would you recommend?
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