In the UK, a Young Person's railcard can be purchased for around 20. These railcards allow the holder 1/3 off most rail fares. Young people often debate whether or not it is worth purchasing a railcard. Explain this situation using budget constraints

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In the UK, a Young Person's railcard can be purchased for around £20. These railcards allow the holder 1/3 off most rail fares. Young people often debate whether or not it is worth purchasing a railcard. Explain this situation using budget constraints and indifference curves and consider the impact of a rise in rail fares on this decision.

A Young Person's railcard can save a young person one third off most rail fares in Britain for a whole year at the initial purchase of £20. This can be used for long and short trips, during the weekend or weekday and also, when travelling by rail. In Britain, a £20 pounds railcard is often an incentive for young people to travel on rails more often because they allow the holder one-third off rail fares with each journey. Young people often debate whether or not this may be worth it. Some people do not use the rail as often as others so therefore, their level of happiness are lower than those who do; thus some people may be better off, worse off and some people may be indifferent towards the purchase of a rail card for discount.

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