Other questions in this quiz

2. Firms can use price elasticity of demand to predict?

  • All of the answers
  • the effect of a change in fares on quantity demanded
  • the effect of a change in fares on total revenue and expenditure
  • the effect of a change in indirect tax e.g. road charging or fuel duty on price and quantity demanded
  • effects of price discrimination in peak/off peak travel.

3. Governments and firms use YED estimates to predict the impact on demand and revenues of ECONOMIC GROWTH

  • The demand for luxury items such as bus travel (negative YED) decreases more than products such as air travel
  • The demand for luxury items such as air travel (high positive YED) increases more than products with a low YED such as bus travel
  • The demand for luxury items such as air travel (low positive YED) increases more than products with a high YED such as bus travel

4. Buses are perceived as?

  • A poor substitute for other modes of transport
  • A good substitute for other modes of transport
  • A reliable substitute for other modes of transport

5. Cars are predominately used by ?

  • High income groups
  • Low income groups
  • Adults

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