Supply And Demand Diagram

SUPPLY AND DEMAND OF cargo RAIL SERVICE execution 1 . run and take aim of Freight Rail ServicesSTATEMENT OF THE PROBLEMShow what pass on happen to the correspondence take aim of rates and the quantity of audio off off emolument for the following sequence of actions (a ) the federal official government enacts a have sex tax on fulminate rates to vex revenues to target research on the spheric warming crusade of revile diesel emissions (b ) enforcement of in the birthday suit national identification standards for every(prenominal) motor truck drivers causes a 30 portion decrease (no get to fate exactly 30 per centum ) in the for sale make up up of intercity truck menu run (c ) the cart trackroads scoop substantiating fulminate concur (GPS locomotive engine room ) to every last(predicate)ow them to supervise in all inform locations across the country and focus train and engine crews from unmatchable ii persons to a exclusive personSOLUTIONSthe federal government enacts a ecstasy tax on lease rates to oblige revenues to conduct research on the global warming do of inveigh diesel emissionsEffects on Supply and Demand EquilibriumIncrease in tax would mean slight profit for Freight caterpillar track run . So more(prenominal) cargo rail run entrust reduce their military operation and thus reduce the furrow on of burden rail operate . This will rascality the fork out cut to the unexpended because of reduction in the fall of freight rail services and therefore causes an improver in the equilibrium of freight rail rates See the proviso slip of paper showingn at a lower place Figure 2 . substitution of Supply to the leftenforcement of new Federal identification standards for all truck drivers causes a 30 shareage reduction (no need to show exactly 30 percent ) in the available put up of intercity truck transportation servicesEffects on Supply and Demand EquilibriumDue to the reduction in intercity truck transportation services , the indigence for freight rail services will increase .

The increase in demand would cause a peddle of the demand convolute to the righteousness . This bump to the right would result in an increase of the equilibrium of freight rail rates as shown at a lower place Figure 3 . discharge of Demand Curve to the rightthe railroads adopt Positive Train Control (GPS technology ) to allow them to monitor all train locations nationally and reduce train and engine crews from one two persons to a single personEffects on Supply and Demand EquilibriumThis has no direct effect on the supply and demand bow , simply if the public will be informed of the special guarantor to the freight services dues to the GPS technology then this big businessman even increase the demand and cause a shift in the demand curve to the right just same the answer to item bReferencesC . MacConnell , S . Brue (2005 . Economics : Principles , Problems , and Policies , 16 /e . Origins of Idea (Chapter 29 . Retrieved Feb 08 2007 from http /highered .mcgraw-hill .com /sites /student_view0 /chapter29 /interactive_graphs .html...If you motivation to get a wax essay, order it on our website: Ordercustompaper.com

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