In 2024, a metropolitan public transit authority replaced its flat-fare structure on suburban commuter lines with a distance-based pricing model, resulting in a 25 percent increase in the average price of long-distance single-ride suburban tickets. Transit analysts predicted this fare hike would decrease total single-ride passenger volume on suburban lines. Surprisingly, over the subsequent twelve months, total single-ride passenger trips recorded across the suburban network increased by 15 percent, even though suburban population growth remained static and no new residential developments were constructed. Which of the following, if true, most helps to resolve the apparent discrepancy described above?
- The distance-based fare structure significantly reduced ticket prices for short-distance trips within suburban districts, attracting a large volume of local commuters who previously walked or drove.Answer
- BThe transit authority decreased the frequency of suburban train departures during non-peak hours, increasing average rider wait times.
- CA major regional highway expansion completed two years prior to the fare restructuring permanently reduced vehicular commute times into the city center.
- DCommuters traveling long distances from suburban stations report higher average household incomes than commuters taking short local trips.
- EMany long-distance suburban riders reacted to the single-ride price hike by purchasing monthly unlimited passes, which are tracked separately from single-ride trips.
Answer
The apparent discrepancy is best resolved by the fact that the distance-based fare structure lowered prices for short-distance suburban trips, driving a substantial surge in local ridership that increased total single-ride trips overall.
The correct answer resolves the paradox by demonstrating that while long-distance single-ride ticket prices rose, the distance-based system concurrently lowered short-distance single-ride ticket prices. The influx of new short-distance riders created a net increase in total single-ride trips across the suburban network, reconciling the 25% price increase on long-distance tickets with the 15% overall increase in single-ride trip volume.
Step-by-Step Solution
Key Concept
Resolving Paradoxes and Apparent Discrepancies