Wednesday, November 28, 2007

Unit 1: Price increases, elasticity and the rail industry

Rail fare increases above inflation were announced today

http://news.bbc.co.uk/1/hi/uk/7116670.stm

a0 Why have rail companies imposed these fare increases?
b) What does this tell you about the PED for these rail services?
c) To what extent do you believe these increases are warrented?

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