(a)[2]
(i) Using Fig. 1.1, describe the pattern in the number of air passengers carried since 1971.
- Using Fig. 1.1, describe the pattern in the number of air passengers carried since 1971. [2]
- Explain one change in a demand factor and one change in a supply factor that may have produced the overall pattern in the Indian air travel market. [4]
(b)[2]
Name and give an example of each of two factors of production needed by airline operators.
(c)[6]
In February 2016, the Indian government raised the tax on aviation fuel from 8% to 14. Use a diagram to analyse the effects of this rise in the market for aviation fuel. Explain what would determine the incidence of this tax between the aviation fuel producers and the airline operators who buy the fuel.
(d)[6]
Discuss whether ending the 5/20 rule would probably bring an overall benefit to the Indian economy.