Why 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 direction?
Answer to relevant QuestionsHow would you set about measuring the external costs of road transport?There exists a view that the UK is too small an economy to benefit from competition in many industries, with firms failing to reach minimum efficient scale. What does this imply for competition policy?Explain the circumstances under which an increase inpensions and child benefit would(a) Increase national income; (b) Leave national income unaffected; (c) Decrease national income.Do any groups of people gain from inflation?Criticise the use of increasing government expenditure as a means of reducing unemployment.
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