Indian Railways announces a 10% increase in the prices of train tickets for long-distance journeys. In response, passengers opt for alternative modes of transportation such as buses or flights, leading to a decline in demand for train tickets. What factor is most likely contributing to this high price sensitivity of demand?

In a city, there are three types of city buses – Ordinary, Metro and Luxury. The price of the ticket for each bus depends on the distance for which a passenger travels. For travelling a distance which is at most 4 km, the price of the ticket for the three types of buses are ₹20, ₹30 and ₹60 respectively. For each additional km or part thereof, the price of the ticket for the three type of buses increases by ₹8, ₹10 and ₹20 respectively. Further, there is a monthly pass – enabling unlimited travel in a month – available for each of the three types of buses, priced at ₹1000, ₹2200 and ₹6300 respectively. Any pass is valid only in the type of bus for which it is meant. Any passenger will try to minimize the total amount that he/she spends in each month on bus travel, i.e., on tickets or bus pass, considering the distance of his/her travel during the month and the cost of the monthly pass.Question No. 5DIRECTIONS for questions 4 and 5: Select the correct alternative from the given choices.Hiren, Lal and Krish travel exactly once every day by Ordinary bus, Metro bus and Luxury bus, respectively. Hiren, Lal and Krish did not buy a monthly pass for May 2023. If h, l and k represent the maximum distance that they could have travelled in a day, which of the following statements is true? h < k < l  h < l < k  k < h < l  l < h < k

Translink is the operator of Brisbane’s public transport network. They operate a variety of services, including buses, trains and ferries. Currently fares on public transport are the same, regardless of the mode of transport. During peak hour (between 7 am and 9am), fares are approximately 20% more expensive due to high demand. Which of the following statements are true: If Translink knows the demand for trains is inelastic during peak period, they can easily use first degree price discrimination. If Translink decided to offer “first class” and “second class” to passengers on its trains, they would be third degree price discriminating. Translink is currently implementing peak load pricing. Translink should raise bus fares if it finds out that demand for buses is elastic.

Why do you think the mean price for Delhi is higher than the mean price for Mumbai?

Question 5Oriental rugsalesmen often start a negotiation by mentioning a ridiculously high price foran item in which you’ve expressed interest. Similarly, posted full fares onairlines tend to be significantly higher than the price that the averageeconomy-class passenger typically pays. Which of the following biases bestexplains why these merchants quote a starting price far higher than theultimate transaction price?1 point MoneyIllusion Anchoring EndowmentEffect Base Rates House MoneyEffect

Question 5Oriental rugsalesmen often start a negotiation by mentioning a ridiculously high price foran item in which you’ve expressed interest. Similarly, posted full fares onairlines tend to be significantly higher than the price that the averageeconomy-class passenger typically pays. Which of the following biases bestexplains why these merchants quote a starting price far higher than theultimate transaction price?1 point Base Rates MoneyIllusion House MoneyEffect Anchoring EndowmentEffect