1. What are the implications for demand in the short and long r
... internal benefit to road users; in effect it would appear that undercharging encourages car ownership. It does not however provide a short-term external benefit to society, but instead further increases the external costs in the long term. A higher number of cars on the road reduces the average speed of travel, causes congestion within urban areas costing an individual both directly and indirectly ... transport is no longer a luxury. The price elasticity of a good that is considered a necessity is low, generally less than 1, suggesting that price changes would have little effect in the ...
- Word Count: 1664
- Approx Pages: 7
- Grade Level: Graduate