That decreasing the price causes elastic demand doesn’t indicate that raise the price decreases demand elastically: there can be a largely inelastic base load.
> Higher-paying workers are more likely to pay more, since people with price-inelastic demand for driving are more likely to be those who value their time more highly.
Again, this is only true absent coercive forces —
Higher paid workers (on average) also have more schedule flexibility and ability to use money to cover for their physical absence.
By contrast, lower paid workers have less flexible schedules and a greater need to utilize their time — eg, they have to perform childcare because their market rate per hour is below child care services.
This leads to a situation where high paid workers have more elastic price demand than low paid workers, and raising prices ends up charging low paid workers because if market distortions from other factors.
> Higher-paying workers are more likely to pay more, since people with price-inelastic demand for driving are more likely to be those who value their time more highly.
Again, this is only true absent coercive forces —
Higher paid workers (on average) also have more schedule flexibility and ability to use money to cover for their physical absence.
By contrast, lower paid workers have less flexible schedules and a greater need to utilize their time — eg, they have to perform childcare because their market rate per hour is below child care services.
This leads to a situation where high paid workers have more elastic price demand than low paid workers, and raising prices ends up charging low paid workers because if market distortions from other factors.