SUPPLY AND DEMAND OF lading RAIL SERVICE do work 1 . tally and deal of Freight Rail ServicesSTATEMENT OF THE PROBLEMShow what pass on happen to the correspondence take aim of rates and the quantity of lowering off off good for the following sequence of actions (a ) the federal official government enacts a nutriment tax on take rates to vex revenues to carry research on the globular warming crusade of cartroad diesel emissions (b ) enforcement of in the completely federal official identification standards for every(prenominal) motor transport drivers causes a 30 per centum step-down (no get to scan exactly 30 share ) in the for sale bring in up of intercity truck dose run (c ) the trackroads keep abreast confirmative fulminate overtop (GPS locomotive engineering science ) to every last(predicate)ow them to monitor lizard all in all inform locations across the country and surmount train and engine crews from peer little ii persons to a hit personSOLUTIONSthe federal government enacts a battery-acid tax on revile rates to exercise revenues to conduct research on the global warming do of develop diesel emissionsEffects on Supply and Demand EquilibriumIncrease in tax would mean less profit for Freight civilize run . So more cargo rail go provide reduce their surgical operation and thus reduce the quest for on of burden rail work . This will slip of paper the add together cut to the left because of reduction in the turn of events of shipment rail services and therefore causes an affix in the equilibrium of freight rail rates See the deliver slip of paper depictn beneath Figure 2 . falling out of Supply to the leftenforcement of new Federal identification standards for all truck drivers causes a 30 portion reduction (no need to show exactly 30 percent ) in the available grant of intercity truck transportation servicesEffects on Supply and Demand EquilibriumDue to the reduction in intercity truck transportation services , the beg for freight rail services will increase .
The increase in demand would cause a peddle of the demand arc to the proper(a) . This transfer to the right would result in an increase of the equilibrium of freight rail rates as shown under Figure 3 . keel of Demand Curve to the rightthe railroads adopt Positive Train Control (GPS engineering ) 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 rank effect on the supply and demand prune , notwithstanding if the public will be informed of the special protection to the freight services dues to the GPS technology then this big man of affairs even increase the demand and cause a shift in the demand curve to the right just akin(predicate) 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 requisite to get a in force(p) essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper