Sunday, January 20, 2008

Unit 1: Price Elasicity od Demand: Hospital car parking charges

An interesting item from the BBC about car parking charges

http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7196033.stm

a) Would demand for hospital car parking be likely to be elastic or inelastic? Explain your reasoning
b) What would happen to the hospitals revenue from car parking if they are forced to reduce their charges?

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