Bus rapid transit (BRT) is a relative new form of urban mass transit. Buses oper

Question

Bus rapid transit (BRT) is a relative new form of urban mass transit. Buses operate on an exclusive right of way but are also able to function on normal streets. The advantages of BRT is that the buses operate with limited stops, boarding and unloading are sped up by using raised boarding platforms in downtown areas and fares are prepaid, and trips are faster because the buses often have priority over other vehicles. BRT was pioneered in Curitaba (Brazil), Ottawa (Canada) and Pittsburgh. A city introduced a BRT service from the downtown area to the airport 5 years ago. Ridership has been relative high at 2000 riders per day and fares are low at $1.50 per trip (compared with a typical $35 taxi fare). Operating costs have increased and the city council is proposing a fare hike to $2.50 per trip. Assume the fare elasticity for the system is similar for other transit systems epsilon = -0.32. What will be the impact on ridership? What will be the impact on revenue? One of the council members suggests reducing the frequency of service. The current headway is 5 mins and she proposed changing to trips every 10 minutes. If the elasticity of service is estimated to be -0.36 for all periods of the day, determine the impact of the service change on ridership? What will be the impact on revenue? What other factors do you need to consider?

Explanation / Answer

A) as fare is increasing Ridership will decrease but fare is much more then Taxy hence there will be not more reduction.

b)

over all revenue will be increase.

c)

1) decrease

2) decrease

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