StudentShare
Search
Go to advanced search...

The Oresund Bridge - Essay Example

Comments (1) Cite this document
Summary
Q1) In this case study, the price elasticity of Oresund Bridge is likely to be price elastic. Price elasticity is influenced by many factors, some of which exist in this case. The first major factor is that price elasticity is high when alternative options are available. …

Extract of sample "The Oresund Bridge"

Download file to see previous pages In this case, people or basically the target audience of this bridge has the option of the ferry available. A rise in the prices will lower the demand for the bridge by a larger ratio as people will prefer to travel by ferry. Similarly, a fall in price will increase the demand by a larger ratio because more people would be able to afford it now. The second factor is that people like to travel from Denmark to Sweden, or vice versa, but they do not need it. Therefore people will only travel if the price is right, which is to say low. Whenever the price decreases, more people can afford it and this results in price elasticity.
Q2) The Swedish government has estimated the price elasticity to be at -1.4. This has several implications for the traffic on the bridge. The Swedish government knows that first of all, an inverse relationship exists. This means that a decrease in price will definitely increase the demand and this can help the government in properly pricing it. The second implication is that any change in price will have 1.4 times the change on the demand. This means that for the government, it is beneficial to decrease the price to increase the demand. For example, if the government reduces the price by 10%, then it will result in a 14% increase in demand. Therefore, this information can be helpful in pricing the tickets for the bridge. Q3) This calculation of price elasticity of -1.4 is not beneficial in the long run because first of all, price elasticity tends to change overtime. Secondly, the government is thinking of changing the price and there is always different price elasticity for every price level. Therefore if the price changes in the near future, then the price elasticity will change instantly. Lastly, advertisement campaigns play a huge role in changing the price elasticity, thus calculation is not useful in the long run. Case study 3.3: The Texas state bird Q1) PED= % Change in demand % Change in price Burbank-Oakland route PED= 120.68% =- 2.51 48% Kansas City-St. Louis route PED= 50.0% = 0.714 70.0% Q2) The above calculated price elasticity applies for the entire industry operating these routes. It does not specifically represent the price elasticity of Southwest Airlines because the values considered for the calculation are for the entire industry. This includes Southwest as well as its competitors. Q3) The Burbank-Oakland route has a high price elasticity of demand which means that the demand is price sensitive. The implication for the price setters is that these airlines should reduce the price of this route a little bit because this increases the demand by a great deal and increases the profitability. On the other hand, it must be kept in mind that the demand will decrease rapidly if the price of this route increases even by a little bit. If the price increases, then it will lower the demand by a large ratio and this will reduce the profits earned. Therefore this high price elasticity of demand can have very crucial implications for Southwest. (AmosWEB) Q4) Although the Kansas City-St. Louis route shows positive price elasticity, it may still prove to be profitable for Southwest to reduce their price. When a company reduces their prices or fares their market share increases and this often results in a long term profit. When Southwest will have a greater market share, they can change the prices according to their strategy. Also, although the price elasticity is positive, it is not at a high level and thus lowering the prices and making small short term losses is not a bad deal if it means increasing market share. Case study 5.1: Microsoft – increasing or diminishing returns? Q1) It is unlikely that a firm is experiencing increasing and diminishing return ...Download file to see next pagesRead More
Cite this document
• APA
• MLA
• CHICAGO
(“The Oresund Bridge Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
(The Oresund Bridge Essay Example | Topics and Well Written Essays - 1000 Words)
“The Oresund Bridge Essay Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/macro-microeconomics/1446665-answer-any.
Click to create a comment or rate a document
gl
gloverjosefa added comment 1 year ago
Student rated this paper as
The topic of "The Oresund Bridge" was impossible to find. I spent too much time to find it. Here at StudentShare, I got the best example. Many thanks!

CHECK THESE SAMPLES OF The Oresund Bridge

British Steel Corp v Cleveland Bridge

..., the rights to a property remain vested in the transferee – Clare, until Alan exercises a right to rescind the transfer for misrepresentation, which is an equity.19 In this case, proving misrepresentation may be difficult, since it is Alan who may be deemed to be guilty of the misrepresentation rather than Clare or Brenda. References: * Burda, Joan M. (2002). “The New Neighbors: Non traditional Families, Non Traditional estates” Abanet, 19(5). [Online] Available at: http://www.abanet.org/genpractice/magazine/julyaug2002/burda.html; accessed 12/15/2005 * Balfour v Balfour,(1985) 5 OJLS 391) * Bray v Ford (1896) AC 44 * British Steel Corp v Cleveland Bridge and Engineering Co Ltd (1984) 27 BLR 136 * Bristol...
11 Pages(2750 words)Case Study

A Bridge Between the Target Language and the Learners Culture: Communicative Language Teaching

Languages are complex but more complicated is the language learning process. We need a language to survive and learning a new language opens new gateways for one’s life. The instrumental factors of language learning make learning motivating, so my learners shall be able to fulfil their instrumental purposes of coping with job situations, along with the maintenance of a healthy social life. At the same time, we must not forget the increasing importance of language as a social function. Thus structuring language on a social basis is also essential. This perspective of language is the functional view that sees language as a vehicle for the expression of functional meaning. This communication in language teaching subscribes to t...
35 Pages(8750 words)Research Paper

Modern Bridge Construction Technologies

...The Construction of Bridges Introduction Definition of a bridge Humankind has, over the ages felt the need for crossing obstacles that are faced by all of us, while we are negotiating any pathways. As bridges are the answer to such problems, they can be defined as any structure that can enable us to crossover a culvert, stream, river, railway track or a part of the ocean. A few logs thrown across a small stream, is the simplest form of the bridge construction. As bridges provide us the passage to cross over the obstacles, we all can find any type of a bridge, in our daily life. The construction of flyovers to allow the traffic pass over at several layers, is a fine example of bridges, that can be seen currently almost everywhere....(1...
8 Pages(2000 words)Coursework

Design and Construction of the Golden Gate Bridge

...Problems with the Construction of the Golden Gate Bridge The Golden Gate Bridge is one of the modern engineering wonders of the world, with its two main towers suspending huge cables which support the entire 1.7 mile long platform where vehicles cross. In earthquakes the bridge simply flexes up to ten feet and swings twenty-seven feet in high winds in each direction without even disrupting traffic. However, it was a long time between the original survey in 1918 to the final opening of the bridge in 1937. Many experts believed the 6,700 ft (2,042 m) strait could not be bridged. Swirling tides and currents, with icy water 500 ft (150 m) in depth at the center and ferocious winds and blinding fogs were seen as insurmountable obstacles...
8 Pages(2000 words)Case Study

The Dynamic Business Process Development Framework to Bridge the Digital Divide among the Aboriginal Community in Australia

...﻿The Dynamic Business Process Development Framework to Bridge the Digital Divide among the Aboriginal Community in Australia ABSTRACT The implementation of information systems in government organizations in Australia with specific reference to the aboriginal community is the major topic under study. This paper proposes a master plan titled Dynamic Business Process Development Network showing the stakeholders and their inter-related activities. The proposed framework includes the development, training and maintenance of the Information and Communications Technology (ICT) and information systems for local communities specially for the Indigenous community. It also reviews the digital divide that exists between indigenous and non-indigenous...
13 Pages(3250 words)Article

Planning and Development of the Project of Millennium Bridge

...﻿History The Millennium Bridge is a piece of architecture that is crossing the River Thames by the help of steel suspensions in London, England. Its purpose is to link the Bankside with the City for the pedestrians. Its main location is in between the Southward Bridge (downstream) and Blackfrairs Railway Bridge. This concept of this project came in result of a competition held by Financial Times along with London Borough of Southwark and the Royal Institute of British Architects in order to connect the Southwark and Blackfrairs bridges for the people on foot. As a result of this competition, unique and innovative idea shines out from all others. The main theme which was intended to make this complex structure of bridge look to appear...
10 Pages(2500 words)Research Paper

The Millennium Bridge Projects

...The Millennium Bridge Over the centuries from the Romans onwards there have been bridges over the Thames. The first one was wooden, possibly built on pontoons and in two parts leading to an island in the river. It was roughly in the position of the present London Bridge and connected Watling Street ( The present A3, and the main road to the south coast ports and so on to the larger continent and Rome itself. Although repaired and replaced many times ( Hence the famous rhyme ‘London Bridge is falling down’) this was the position more or less of the only fixed crossing of the river near the City of London until the building of Putney Bridge as late as 1729. Instead boat men conveyed people back and forth. From that time of the building...
10 Pages(2500 words)Case Study

The Bridge of San Luis Rey by Thornton Wilder

Captain Alvarado is an astute and esteemed man who has the respect of many people who come to seek his company. Alvarado develops a relationship with Esteban in Cuzco, whom he hires to sail with him. The two develop a friendship that is based on mutual respect and compassion. Alvarado is compassionate to Esteban in the beginning, knowing that he helps the Abbess attempt to reform him. He is compassionate because he genuinely cares about Esteban and his future. Captain Alvarado is relatively static. He is troubled by the loss of his daughter, which is the main reason why he sails everywhere. Like with Dona Clara, his memory of his daughter keeps her alive. He does not have a role in the change from false to authentic love in ano...

6 Pages(1500 words)Book Report/Review

New Tappan Zee Bridge

...﻿ Building New Tappan Zee Bridge Introduction This paper aims to discuss several public issues regarding the construction of Tappan Zee Bridge over the Hudson River in Westchester County, in the state of New York. The people of Westchester County face major problems regarding traffic, environment, and expensiveness of toll tickets on the use of this bridge as means of transportation with New York. The construction of Tappan Zee Bridge is quite essential to counter the challenges faced by the public. It should be strategically planned and executed in reference to the legal laws and policies as defined by the US Government. The bridge must also include a railroad and a separate lane for busses (Berger, 2014). The construction of Tappan Zee...
8 Pages(2000 words)Research Paper

Volunteering at Bridge Substance Misuse Programme

...﻿Placement Report at Bridge Substance Misuse Programme Table of contents Background and purpose of the report 2 Objectives of my attachment 2 Organization culture and culture 3 Counselling department 4 Daily schedule 6 Responsibilities 6 Description of the completed tasks 7 Revise and update the information on the Bridge website about the Counselling residents. 7 Add Counselling faculty biographies, CVs and photos to the Bridge website. 9 Add an event schedule on the Bridge website. 9 Include counselling clinical trials on the website. 9 Include a page to the Bridge website having the information on department's mission statement, psychiatrist names, and a description on Counselling services. 9 Investigate and write information regarding...
10 Pages(2500 words)Admission/Application Essay