A simple economic model predicts that a fall in the price of bus tickets means that more

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A simple economic model predicts that a fall in the price of bus tickets means that more people will take the bus. However, you observe that some people still do not take the bus even after the price of a ticket fell.
a. Is the model incorrect?
b. How would you test this model?
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Microeconomics

ISBN: 978-1292079578

Global Edition 1st Edition

Authors: David Laibson, John List

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