Demand and Factors that Determine the Demand for Rail Transport Assignment

Demand and Factors that Determine the Demand for aim Transport Between London and Preston - Assignment ExampleAccording to the law of collect, with other factors held constant, generally, the invite decreases/ profits with the increase/decrease in price of the good. This relationship between demand and price is plotted on a graph as a demand curve as shown in Figure 1.What factors determine the demand for rail transport between London and Preston? The demand for rail transport between London and Preston depends on the following factors 1. Price of rail function between London and Preston The most important factor that determines demand of this transport is the price of rail slating to pop off between London and Preston. Travelers would comp be this price of ticket to greet of using election transport. This is important not only for people travelling once in a while but also for frequent travelers. If there exists considerably reduced f are contingency for frequent travelers, the demand could be expected to be higher from these frequent travelers would have lower cost of travel. 2. Time interpreted by rail travel between London and Preston Time taken to travel by train is another important factor. If the prison term taken by train is considerably yearlong than other means of transport, the demand whitethorn be lower for rail travel. 3. Quality of rail swear out between London and Preston The musical note of service could also be an important factor. It includes not only the part and comfort of travel by train but also other factors like the frequency of trains, on- meter arrival, and the time of departure/arrival of trains. Frequency of trains is important so that if consumer(s) change their itinerary suddenly, if there are alternative trains frequently cartroad, they would not be forced to shift to another means of transport. Next, if the trains are frequently running former(a), consumers may not find the rail travel very efficient. Also, if the departure and arrival times of trains are not convenient, consumers would not find rail travel very attractive. For example if trains arrive only late at night or if the trains run during the entire length of the day, consumers may be put off. 4. attractor of alternative modes of travel between London and Preston There could be several other ways consumers to travel between London and Preston. If these services are more attractive, then demand for rail travel would be low. The attractiveness of these alternatives also depends on the relative price of these modes, relative comfort, and other factors. Some of these are discussed below for the three other possible modes of transport a. By car Several factors could influence the attractiveness of way out by car instead. These factors include fuel price (cost of taking the car), relative length of time taken to drive compared to rail travel, and quality of highways (comfort of ride). b. By air Factors influencing the relative attracti veness of air travel are price of air travel, relative total time taken to get from door to door, and of quality air transport services. However, there is another important factor here which is the distance of nearest airport from Preston. c. By bus Factors influencing the relative attractiveness of bus travel are price of bus tickets, time taken by buses, and the quality of bus services. 5. Day of the calendar week and seasonal effects The day of the week could be an important factor. For example, if business travel is frequent on this route, then weekends may see a much lower demand. Also, Seasonal effects are likely to significantly influence demand. For example, during Christmas the demand may be