Wanderlust World Wanderlust World
Elastic Bus Fares:
1. Short-Term Elasticity: In the short term, bus fares may exhibit some degree of elasticity. If the bus fare increases by a small amount, some people who are sensitive to price may choose to use alternative modes of transportation, such as walking, cycling, or carpooling. As a result, the quantity demanded for bus rides may decrease, causing the demand for bus rides to be elastic in the short term.
2. Long-Term Elasticity: Over a longer period, the elasticity of bus fares tends to increase. People may have more time to adjust their travel habits, find alternative routes or schedules, or even relocate closer to work or essential services to reduce their dependence on buses. This adjustment in travel behavior makes the demand for bus rides more elastic in the long term.
Inelastic Bus Fares:
1. Necessity of Bus Service: For individuals who rely on buses as their primary means of transportation, such as students, low-income individuals, and those without access to private vehicles, bus fares may be relatively inelastic. Even if the fare increases, these individuals may have limited alternatives and may still need to use the bus service to meet essential needs like education, employment, and healthcare.
2. Limited Competition: In some areas where there is limited or no competition from other public transportation options, bus fares may be less elastic. This lack of alternatives reduces the ability of passengers to switch to other modes of transport, making the demand for bus rides less responsive to price changes.
It's worth noting that elasticity can vary based on factors such as the availability and affordability of alternative transportation options, the extent of public transportation infrastructure, and socioeconomic conditions in a particular region or city. Therefore, the elasticity of bus fares can vary across different contexts and circumstances.