Factors Leading to an Increase in Bus Travel Demand
‘Both the take-up rate and number of journeys per bus pass have been falling in recent years.’
Explain two factors which could lead to an increase in the demand for bus travel in the future.
Demand and Supply
AQA AS ECONOMICS November 2020
(Step 1: Define 'demand' in the introduction)
Demand refers to both the willingness and the ability of customers to pay a given price to buy a good or service. There are several factors which could lead to an increase in the demand for bus travel in the future.
(Step 2: Explain TWO factors which could increase the demand for bus travel)
🚌 Factor 1: A change in tastes or social norms will increase the demand for bus travel.🚌
Today, travelling by bus has the image of being unpleasant, unreliable and for the 'lower class'. However, more awareness is being raised about air pollution, climate change and Co2 emissions. People in the future may perceive bus travel as being more ecologically and economically efficient. Furthermore, with the introduction of smart lanes and electric buses, the experience of travelling by bus will improve with time. These factors will encourage people to take the bus.
If more people become aware that travelling by bus is environmentally friendly, more people will opt for bus travel to reduce their carbon footprint. The demand for bus travel will increase. The effect of an increase in demand for bus travel can be shown using a diagram. The diagram below shows the demand and supply curves of bus travel.
(Diagram given in full essay!)
Ops... End of preview!
Already purchased Economics Study Pack subscription? Amazing! Click below