Compare the relative merits of increased road fuel taxes, electronic road pricing and tolls as means of reducing urban traffic congestion. Why is the price inelasticity of demand for private car transport a problem here, whichever of the three policies is adopted? What could be done to increase the price elasticity of demand?
Answer to relevant QuestionsWhy is the price inelasticity of demand for private car transport a problem when formulating a policy for the reduction of traffic congestion? What could be done to change the price elasticity of demand in a desirable ...If two or more firms are charging similar prices, does this imply that collusion is taking place? What evidence would you need to determine the existence of collusion?Explain how equilibrium would be restored in the circular flow of income if there were a fall in investment.Consider the most appropriate policy for tackling each of the different types of unemployment.Criticize the classical theory that higher government spending will necessarily crowd out private spending.
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