Monday, July 23, 2007

Unit 1: Price elasticity of demand: Car parking

The BBC reports rising car parking prices at some hospitals

http://news.bbc.co.uk/1/hi/england/nottinghamshire/6910692.stm

a) What do the hospitals believe demand for car parking to be?
b) What PED factors explain this?
c) What do you expect to happen to the revenue received from car parking by the hospital?
d) Draw a diagram to show this revenue change

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