Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

Transport economists judge that the price elasticity of demand for private car use is very low. Which measure would be the most effective for reducing road traffic congestion?

  • Abanning private cars and lorries from town centres
  • Bintroducing a subsidy to lower the price of using bicycles
  • Cintroducing road pricing on all main roads
  • Dsubsidising public transport such as trains and buses

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