1. What are the implications for demand in the short and long r
... is again is very beneficial to business and the general public in the short term, reducing the time spent travelling and encouraging industrial development. For example, a location that is easily accessible by road will attract industry and hence increase the value of the land; similarly existing property will increase in ... the inefficient use of the cars purchased. With reduced costs a car is used when it is not the most efficient method of travelling, for example for very short journeys. In the long term this creates a market failure where resources are not efficiently allocated, in t...
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- Grade Level: Graduate