In the UK, proposals to persuade people to switch from travelling by road to using rail by introducing a road pricing system were expected to have little impact because ‘people like using their cars too much’. How could this prediction be explained?
- AThe price elasticity of demand for cars is high.
- BThe price elasticity of demand for petrol is high.
- CThe price elasticity of demand for rail travel is low.
- DThe price elasticity of demand for car travel is low.