demand supply transport

Question 1

transport is usually

Answer 1

a derived demand.

it usually results from demand for other goods or services

Question 2

demand for travel is

Answer 2

income elastic and price elastic

Question 3

most transport has a positive income elasticity of demand

Answer 3

as real incomes increase the demand for transport increases

Question 4

what transport doesn’t have a positive YED

Answer 4

bus travel considered an inferior good

Question 5

demand for travel is price elastic as

Answer 5

people might cut back in leisure travel if prices rise.

commuter travel less likely to be affected.

Question 6

price elasticity of car is

Answer 6

quite low.

Question 7

demand for car travel factors

Answer 7

cost of journey - price elasticity quite low. continent and comfortable. people like.

income -

substitutes - bus train, considered poor substitutes. cross elasticity of demand low.

complements - complement goods like car insurance, parking affects demand

Question 8

car demand factor income

Answer 8

car ownership usage rise with real income

economic growth causes increase in car usage

Question 9

short run supply of roads is

leads

Answer 9

fixed
to excess demand
congestion

Question 10

congestion is reduced by

Answer 10

introducing a price for using road network.

price set at right level reduces demand back to level of supply.