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Transport & elasticity of demand
1.
TRANSPORT & ELASTICITIES
OF DEMAND 1
2.
44 80 0 50 100 1980 2010 Percentage
of petrol price paid as treasury tax Year Percentage 2
3.
PRICE ELASTICITY OF
DEMAND FOR FUEL 3
4.
Q1 I1 Q2 Income Elasticity =
12/10 =(1.2) Relatively Elastic I Increases by 10% Q increases by 12% I2 INCOME ELASTICITY OF DEMAND FOR FUEL 4
5.
D1 Q1 D2 P Q2 SHIFT IN DEMAND
DUE TO INCOME Q increases by 12% 5
6.
CHANGE IN WAY
OF COMMUTING 6
7.
CHANGE IN WAY
OF COMMUTING 7
8.
8
9.
9
10.
IMPACT OF SOCIAL SECURITY TAX ON
DEMAND AND SUPPLY OF LABOR 10
11.
11
12.
12
13.
IS SAUDI ARABIA SOWING
SEEDS OF OIL CRASH ???... 13
14.
14
15.
SHORT-RUN AND LONG-RUN
PRICE ELASTICITY OF DEMAND 15
16.
16
17.
17
18.
18
19.
Higher fuel prices and
taxes are good ? 19
20.
20
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