Economics 0455 · IGCSE · Demand

Demand — practice question

Air travel and rail travel are substitute types of transport. The diagram illustrates the impact of new technology on the market for air travel. What is the most likely result for the market for rail transport?

  • Aa decrease in demand for rail transport
  • Ban increase in the price of rail tickets
  • Can increase in supply of rail transport
  • Dan increase in the total income of rail companies

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