Price elasticity of demand, measures how much a change in price can affect the quantity demanded. This can be calculated using the …show more content…
Over-time people may be able to integrate the extra 7 minutes of travel into their routine, or find other substitutes, causing demand for the bridge to be become elastic. However, this would likely not happen as looking at the average income for Leigh Woods residents (STATS AND REFERENCES) it is higher than the UK average income (STATS AND REFERENCES). This shows that users have more disposable income and would class the £1 toll charge as a necessity as opposed to a luxury. This is another determining factor of price elasticity. Using the toll bridge is a necessity that they would be willing to pay more …show more content…
Zhu, Y. (2017) Economics for Events and Marketing Lecture 3: Price Elasticity of Demand [lecture to BSC Business Management with Marketing Year 1], University West of England. 6 October.
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