Indian Railways is a state-owned enterprise that is owned and run by the Ministry of Railways. At present, India has only one railway line that is privately owned. The rail travel market is affected by movements in the markets for other types of transport. For example, shifts in the supply of oil and petrol affect the market for car travel.
(a)[2]
Define a market in economics.
(b)[4]
Explain two reasons why the supply of a raw material such as oil may increase in the future.
(c)[6]
Analyse, using a demand and supply diagram, how the oil market would be affected if demand for oil rises by more than supply for oil.
(d)[8]
Discuss whether car travel will rise in the future or not.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “An arrangement that brings buyers and sellers together” …