Final tips for the exam this afternoon

Likely questions:

1. What is derived demand and why is the demand for transport by rail derived? (10)
Evaluate government policieis aimed at increasing supply in the local bus market. (15)

2. Explain road pricing. (10)
Is road user charging appropriate to reduce the market failure arising from traffic congestion (urban and motorway) (15)

3. How is contestability related to efficiency within a market? (10)
'The entry of low cost airlines has increased efficiency in the air passenger transport market' Discuss. (15)