Distance Between Bus Stops Consider a city that decreases the distances between
ID: 3141981 • Letter: D
Question
Distance Between Bus Stops Consider a city that decreases the distances between bus stops, which decreases the walking time of bus riders by 20%, increases the in-vehicle time by 10%, and increases fares by 5%.
On the typical bus line, the initial ridership is 1,000 riders per hour. Suppose that for every 1% reduction in walking time there is an increase of 0.4% in bus ridership and that for every 1% reduction in in-vehicle time there is an increase of 0.3% in bus ridership. Also, suppose that for every 1% increase in the bus fare there is a decrease of 0.8% in decrease bus ridership.
a. Ignoring the changes to in-vehicle time and fares, what is the effect on ridership resulting from just the change to walking time? Will ridership increase, , or stay the same as a result of this?
Explanation / Answer
The ridership will increase. For every 1% decrease in walking time there is 0.4% increase in ridership. If a 20% decrease in wlaking time is brought about there will 20*0.4 = 8 percent increase in ridership. Thus riderhsip will increase to 1080.