Since these buses serve more than just the congestion impact area, this would help reduce congestion over a larger area than just the Montrose vicinity. No one knows how much ridership would increase due to a fare reduction of this magnitude. If a price change results in a higher percentage change in quantity demanded, the demand is described as elastic. If a price change results in a lower percentage change in quantity demanded, then demand is described as inelastic. A one to one ratio in price change to quantity demanded is referred to as unitary demand elasticity.
Studies tend to find that demand elasticity for transit services is inelastic.
It is probably conservative to assume a price elasticity of demand of .4. This means that a 10 percent decrease in price would result in a 4 percent increase in ridership. Unitary elasticity is stated as equal to 1, so assuming .4 is far less than unitary elasticity. Making bus service to Shady Grove Metro cheaper would help to divert some of this traffic to Metro Rail. The county is currently conducting a nine month trial of free rail to Ride On transfer at Shady Grove.