Sunday, December 30, 2007

Unit 1: The price of road haulage

This BBC clip says that the increase in diesel prices is having a significant effect on road haulage firms

http://news.bbc.co.uk/player/nol/newsid_7160000/newsid_7161100/7161145.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

a) Using a S&D diagram, explain the effect on the price of road haulage of the increase in diesel fuel prices for road haulage firms
b) What effect is this fuel price increase likely to have on the competitive position of any single firm

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