1. The increase in congestion on Britain's Road's
... The increase in incomes and relative fall in the price for cars has led to the higher number of cars on the road. The supply for road use is fixed in the short run as it cannot be transferred; the roads are not constantly congested, it is only during peak times, the ... successful because private car use and bus/underground travel may not be very close substitutes. Therefore, the large change in price may have little effect on the quantity demanded. The subsidy will need to be financed by government. The higher expenditure within budgetary constraints results in either an increase in taxa...
- Word Count: 1857
- Approx Pages: 7