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Find out why these past few years, demand for public transport is gradually decreasing.

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Introduction

Economic Coursework This project I am assigned to find out why these past few years, demand for public transport is gradually decreasing. There are many reasons why this happens. Demand for cars could have been in an increase over the past few years as this affects the demand for public transport, as it is a substitute good. This could also measure the elasticity of bus fare, how responsive it can be. So if there were more substitutes for public transport, it will mean it are elastics good. There are many other things which may cause congestion to be an economic problem. What is congestion charging? Congestion charging is a way of ensuring that those using valuable and congested road space make a financial contribution. It encourages the use of other modes of transport and is also intended to ensure that, for those who have to use the roads; journey times are quicker and more reliable. The London scheme requires drivers to pay �5 per day if they wish to continue driving in central London during the scheme's hours of operation. Why is it an economic problem? There are many reasons why congestion is an economic problem as congestion comes about when the actual journey times taken by transport users are in excess of their normal expectations. Congestion can have many consequences other than increased journey time; the stress caused by it can be the cause of road rage, as well as the increase in harmful emissions having detrimental effects to the areas buildings, air quality and quality of life of all involved. Congestion is simply caused by too many cars with little road space. The demand for public transport has far exceeded the supply. The increase in incomes and relative fall in the price for cars has led to the higher number of cars on the road. There are many reasons why congestion is an economic problem, but to solve the problem, I will have to look at congestion very closely by using ...read more.

Middle

more consumers -there is more credit available. The demand curve will shift to the left, from d1 to d3, and see the quantity demand fall, from q1 to q3 if the opposite of the above occurs. For example, if advertisement on global warming and pollution is advertised, this will encourage consumers to use fewer buses but to walk to work or ride a bike. If substitute goods falls, such as a car. Most consumers would buy a car, leaving less or fewer consumer demanding for buses. Supply- According to the law of supply a higher quantity will be supplied at higher prices, all other things unchanged. This is because the higher prices will encourage firms to supply more. This relationship between price and quantity supplied can be shown on a supply curve. So if bus fares were high, more bus company would agree or willing to supply more buses for the consumers, so they are able to make more money. If more bus company are willing to supply more buses, it could also mean less congested roads, so more consumers are encouraged to use buses than cars. However, price is not the only factor affecting supply. Other factors include the prices of factors of production- land=rent, labour=wages, capital=interest. Technology could affect the amount supplied, improvement in technology will mean production is cheaper and faster, so workers are less needed and less wages paid. The supply curve will shift to the right, from s1 to s2, and see the quantity supplied increase, from q1 to q2 if: -the increase in the number of suppliers -there is an improvement in technology -there is a fall in the prices of factors of production. The supply curve will shift to the opposite side, if the opposite of the above occurs. Market Equilibrium- this is very important as it solves the economic problem of congestion. If bus fares are set to a good price or other public transport such as train and the tube. ...read more.

Conclusion

Overall I believe it could have been more effective and that I could have got more out of it. The main weakness of my research method was that, I couldn't get enough details from the people I was questioning. This could due to the fact that my questionnaire wasn't effective enough. I could have asked more useful questions which was related to the coursework. How cheaper public transport solve the problem of congestion. The strong point of my research was that, I was able to find bout the substitutes for buses, how effective it would have been if train tickets costed less than bus fares. That more consumers will travel on train than buses. I was able to find this from the research. If I was to carry out this research again, to improve it, I will attempt to make a questionnaire which is more relevant to the coursework. Asking them for their own opinions on the buses, rather giving them a list to choose from. As this could give me a wider range of answer to help me to solve the congestion problem in London. Other methods that could be used to solve the congestion problem apart from cheaper public transport could be the cost for off-peak and peak time costs. For trains nows, they have a peak time cost and off peak cost. This is when in the morning, trains are very busy and so tickets cost more during the morining rush hours. But after 9:30am it is then the off-peak time when most people has gone to work, and less people are taking the train which is when the ticket price are lower. I believe that, introducing this system to buses, could solve the cogestion in roads. Rather than something like congestion charging, when driving in central London, you would be made to pay a fee of �5 everyday. Which the government believes that it will encourage more people to use public transport than using their own car. There are many ways other than this method shown above. ?? ?? ?? ?? 1 ...read more.

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