price discrimination

Question 1

But why….why do train lines charge adults higher prices and students lower prices for train tickets!?

Answer 1

Adult demand is more inelastic, because adults have higher incomes and are therefore less responsive to price changes. This means train lines can charge adults higher prices.
Student demand, however, is more elastic, because students have less money to spend and are therefore more responsive to price changes. This means train lines have to charge students lower prices.

Question 2

For instance, people who are younger usually have lower incomes so their demand will be:

Answer 2

AMore elastic