Grand River Transit

[Spokes]

This is something that's always been stuck in my head, but I've never run the numbers to see.  If cutting fares increased ridership, would it not make sense to do so?  Like if you cut $1million from fare rates, but the increased ridership generated $1million, wouldn't that be a win?  

I guess they figure that there are some people that won't ride it no matter how cheap it is

My understanding of price elasticity is that an elasticity of 0.3 means that if fares were cut by $1M, there would be an increase in ridership that would generate about $300K. As long as elasticity is less than 1, fare increases will increase revenue, and fare cuts will decrease it.

Flashbacks to first year economics.

Thanks for the explanation.  Not that I think they'd cut fares though, I don't think fare prices are what's keeping people from using transit on a regular basis.