ECONOMICS
ELASTICITY OF DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
In the UK, attempts to encourage people to change from road to rail travel by the introduction of a system of road pricing were forecast to fail because ‘people like using their cars too much’. How would this forecast be explained?
|
|
The price elasticity of demand for cars is high.
|
|
|
The price elasticity of demand for petrol is high.
|
|
|
The price elasticity of demand for rail travel is low.
|
|
|
The price elasticity of demand for car travel is low.
|
Explanation:
Detailed explanation-1: -9 In the UK, attempts to encourage people to change from road to rail travel by the introduction of a system of road pricing were forecast to fail because ‘people like using their cars too much’. How would this forecast be explained? A The price elasticity of demand for cars is high.
There is 1 question to complete.