martes, 26 de marzo de 2013

Demand curve in Peru

An example here in Peru apart from children is in Public transport.

Combis are a major problem here in Peru and it has a demand curve , there are some options that include shifting the demand curve and moving it . One of them is by eliminating these combis by introducing other way of transport or by changing the price of the Metropolitano and this will cause more and more people to prefer the Metropolitano than combis, that is a lot safe. This achieves to shift the demand curve to the left so the combis will be less. This option allows you to shift the demand curve and so, eliminating combis and replace them with other transports.
Other way to change the demand curve is by moving along it, if the government rises the taxes and the prices of the combis, there will be less people that will prefer this way of transport. Remember that nowadays it is very cheap! and poor people like this and by moving it for more price, it will be unfair for them but at the same time good because combis produce many problems in people and the environment. In this option, the combis stays but their prices rises and this will affect people.
Nowadays there is this problem and i think the best choice is the second one.

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