Air Transport in the United Kingdom
Q1. Factors That Determine the Demand for UK air Transport The air transport market has been expanding rapidly ever since the first commercial airplane set for the skies in 1914. At first it was mainly used for international transportation but local transportation also became available, periodically increasing the demand for air transportation and this was witnessed in all countries with air transport such as the United States of America, France, Germany, Russia, Netherlands and the United Kingdom. Since air transport was seen as an important and safe mode of transport, aside from the demand for it, there was also gained the trust for air travel by many more countries who previously had no air transport. …show more content…
For example, the number of trips taken for vacations/holidays and business trips matters. With many United Kingdom residents having relatives in other parts of the world, the need for air travel was paramount as there has been an increase in the personal wages of passengers who could afford to travel to international destinations more than often yearly. The travelling has also been complemented by the ever falling prices of air tickets. The number of business trips also escalated with the rise of multinational companies hence the need for air travel to and from vast international company …show more content…
The demand for air travel is directly proportional to the income.
Q2.2. Concept of Income Elasticity of Demand and Inferior Goods A normal good is when the personal income of consumers or customers is directly proportional to the demand. Goods and services tend to be used in larger measures the more consumers/customers earn more and are equivalently used less when the consumers/customers earn less. Inferior goods are those whose prices go down when the consumers’ income increases. They are the goods that are seen as too cheap by some consumers when they start earning more, and end up choosing to settle for more expensive or better quality versions of the said products and or services.
Q2.3. Implications for Budget and Scheduled Passenger Arlines During a
Q1. Factors That Determine the Demand for UK air Transport The air transport market has been expanding rapidly ever since the first commercial airplane set for the skies in 1914. At first it was mainly used for international transportation but local transportation also became available, periodically increasing the demand for air transportation and this was witnessed in all countries with air transport such as the United States of America, France, Germany, Russia, Netherlands and the United Kingdom. Since air transport was seen as an important and safe mode of transport, aside from the demand for it, there was also gained the trust for air travel by many more countries who previously had no air transport. …show more content…
For example, the number of trips taken for vacations/holidays and business trips matters. With many United Kingdom residents having relatives in other parts of the world, the need for air travel was paramount as there has been an increase in the personal wages of passengers who could afford to travel to international destinations more than often yearly. The travelling has also been complemented by the ever falling prices of air tickets. The number of business trips also escalated with the rise of multinational companies hence the need for air travel to and from vast international company …show more content…
The demand for air travel is directly proportional to the income.
Q2.2. Concept of Income Elasticity of Demand and Inferior Goods A normal good is when the personal income of consumers or customers is directly proportional to the demand. Goods and services tend to be used in larger measures the more consumers/customers earn more and are equivalently used less when the consumers/customers earn less. Inferior goods are those whose prices go down when the consumers’ income increases. They are the goods that are seen as too cheap by some consumers when they start earning more, and end up choosing to settle for more expensive or better quality versions of the said products and or services.
Q2.3. Implications for Budget and Scheduled Passenger Arlines During a