Question

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.

Answer 1

True statements:

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.