[PRCo] Re: GASOLINE PRICES

[Shirley Tennyson]

     The elasticity of rail and bus is not the same, or, more
scientifcally, elasticity varies with the competitive nature of the
service.
     Transit dependant people are not a factor. They have no choice.
    Among auto owners,    speed is   the number one determinant. Auto
usually beats transit on speed except for NorthEast Corridor and some
highly congested suburban freeways.   Second comes parking fees.  Free
parking at work will not make many transit riders,  Pay for parking will
shift many to transit. Parking costs far more than gasoline,.  For
example, a $ 5 all day parking fee compares to $ 3.75 for gasoline for a
30-mile round trip.   Fifty cents a gallom  will not make much
difference but $ 30 to fill the tank is a shocker psychologically.
     APTA reports about a four percent gasoline price caused gain on bus
linea and eight per cent on rail lines where quality of servcie plays a
larger role.
    When a fast Light Rail service replaces a peak hour only bus service
,the gain can be in the hundreds of percent.
                  E d   T e n n y s o n