星期五, 11月 12, 2004

I have the following puzzles

I know that both air travel service(3 hours flight) and trains (36 hours on rails) are operating currently between HKSAR and Beijing.
Suppose that under the following circumstances :

  • (a) the general real wage rate of the HKSAR citizens rises;

  • (b) a fixed departure tax is imposed by the government no matter the HK people travelled by airplanes or trains;

How could you predict the impact on the change of number of travellers using airplanes (air passengers) and railways (rail passengers) from HKSAR to Beijing? (Hint: be resolved by the Law of Demand)


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