StudentShare
Search

# Rates for Air Passenger Duty - Assignment Example

Summary
This paper "Rates for Air Passenger Duty" discusses the fact that the rise in APD surely helps the society, the government, and the environment at the cost of the increased price of flights. The policy appears to be justified from various aspects-be it redistribution or environment…

## Extract of sample "Rates for Air Passenger Duty"

Download file to see previous pages The price-quantity equilibrium with APD = £11, is shown by points A and B in Fig: 1. The fare that the consumers pay is given by Pd1 and the amount that the sellers receive is shown by Ps1. The difference between these two prices, given by AB (= £11), is collected as the duty fee per unit by the government. The equilibrium supply of the short-haul trips is Q1.

Now with the hike in APD, the demand curve falls further to D2. As again, the vertical distance between D2 and D0 is £12. The new equilibrium quantity and prices are now given by the points C and D. Fare that the buyers pay is now Pd2 and the sellers receive as much as Ps2. Again the difference between these two prices, i.e. CD (=£12) is taken as the duty fee per unit by the government. The equilibrium quantity of short haul trips now reduces to Q2. Thus the entire effect of this decision can be summarised below:
From society’s point of view the deadweight loss from the taxation also rises. With APD = £11, it is equal to the area of the triangle ABE, but with the hike of £1 in APD, the dead weight loss will be equal to the area of the larger triangle CDE. Hence the deadweight loss or the loss in social welfare accumulates with this decision (Mankiw, 2008, p. 164).

Thus the buyers’ price will rise exactly by the hike in the rate of tax, i.e. £1, only if Ed = 0, which means the price elasticity of demand is equal to zero which further means that the demand curve is vertical and perfectly inelastic. In case of perfectly inelastic demand, the buyers will not try to look for alternatives even if the price of that commodity rises. They will not try to shift their consumption to elsewhere very easily. Producers will, in such cases, try to take advantage of buyers’ strong inclination towards their product. They will pass the entire burden of increased taxes onto the buyers successfully. Thus if the demand is perfectly inelastic, buyers have to bear the entire burden of the tax. ...Download file to see next pagesRead More
Tags
Cite this document
• APA
• MLA
• CHICAGO
(Rates for Air Passenger Duty Assignment Example | Topics and Well Written Essays - 2321 words, n.d.)
Rates for Air Passenger Duty Assignment Example | Topics and Well Written Essays - 2321 words. Retrieved from https://studentshare.org/macro-microeconomics/1572157-air-passenger-duty
(Rates for Air Passenger Duty Assignment Example | Topics and Well Written Essays - 2321 Words)
Rates for Air Passenger Duty Assignment Example | Topics and Well Written Essays - 2321 Words. https://studentshare.org/macro-microeconomics/1572157-air-passenger-duty.
“Rates for Air Passenger Duty Assignment Example | Topics and Well Written Essays - 2321 Words”, n.d. https://studentshare.org/macro-microeconomics/1572157-air-passenger-duty.
Click to create a comment or rate a document

## CHECK THESE SAMPLES OF Rates for Air Passenger Duty

### Disruptive Passenger Behaviour and Air Rage

...? Disruptive Passenger Behaviour and Air Rage Disruptive Passenger Behaviour and Air Rage Introduction The dilemma of disorderly passage conduct or what has come to be known as air rage has been a prevalent problem over the years. However, in the last twenty years, the seriousness of the cases has increased tremendously forcing governments, airport authorities and other stakeholders to take action to mitigate the problem. This disruptive behaviour has been witnessed in all socio-economic groups: the young, old, women, men, or business and economy passengers. According to Hunter (2009) air rage is by far the “greatest threat to the safety and security of the 1.5 billion passengers who travel by air each year, because even one small...
10 Pages(2500 words)Essay

### Airport Passenger Process Mapping

Developing a comprehensive operation plans calls for the involvement of all stakeholders responsible for the running of business ventures (Magali). The Dubai airport has instituted its operation management plans to address the ever-changing intricacies as well as regulatory compliances of safety issues in the modern world. The Dubai airport handles millions of passengers all year round. For instance, in 2010, it handled close up to fifty million passengers. To manage the passengers the Dubai airport has instituted an operations management approach, which has integrated technology to manage both cargo and passengers (Dubai Airports). With numerous systems offering information, an operating system can be weighed down with informatio...
6 Pages(1500 words)Coursework

### Countervailing duty

... oriented approach. In practice, no consistent distinctions could be drawn between benefits accumulated from a foreign firm subsidy and competitive benefits from a simple subsidy. The cash flow of the benefit-oriented approach, government actions tend to present a countervailable subsidy on a foreign firm whenever such action allows the foreign firm to receive something other than what it received from the market. The difference which occurs in the firm’s cash flow as a result of subsidy is primarily, the benefit which would be defused by the countervailing duties. This would be inevitable as countervailing duties tend to pro-rate the value gained by a company and of the countervailing duty over the amount of merchandise produced30...
20 Pages(5000 words)Essay

### Air Passenger Duty

... as the objectives and come under different dimensions depending on the aims that the researcher wants to achieve. Some of these specific objectives are thus given as followers: i. Estimate the existing passenger demand for various aircrafts working at the Cardiff Airport. ii. Undertake a comprehensive projected demand for air passenger travel according to Bands A, B, C and D as used in classifying new rates under the air passenger duty. iii. To undertake a comparative analysis between Cardiff Airport and its key competitors including Bristol Airport to understand the trend of passenger numbers and routes used by these. iv. To undertake a quantitative study on the flow of revenue to the Welsh Government through air passenger duty and how...
17 Pages(4250 words)Research Paper

### Airline Passenger Security Screening

... elements in air or on finger tips can also reduce intrusiveness. One thing must be remembered that although security search should be as limited as possible but practicality needs not to be sacrificed. Reference National Materials Advisory Board (NMAB). Airline Passenger Security Screening: New Technologies and Implementation Issues. (1996). 34-51. Retrieved from http://www.nap.edu/openbook .phpisbn=0309054397&page=34. United States Department of Home Land Security. Transportation Security Administration. Alien flight student program. Retrieved from https://www.flightschoolcandidates. gov/afsp2 /acct _type=c§ion=FQ....
4 Pages(1000 words)Essay

### Duty Ethics

... Duty Ethics Duty ethics involves duties that are morally right to the person performing the action. The actions are based on what we ought to do for mankind but not because of inclination (Garrett, 1). However, for the action to be regarded ultimately good is to take into consideration the doer’s goodwill. The actions are acknowledged as wrong if the motive of the individual in acting is not in good faith regardless of the good consequence accompanying the action. For instance, the action of a police officer in shooting a burglar is wrong despite saving property and another life when he did it to gain work promotion or because he has the tendency to fire his ammunition. This is because his will does not give him dignity. However...
1 Pages(250 words)Essay

.... Airline Business, 27(9), 63. Manuela Jr., W. S. (2011). In search of profits: the case of philippine passenger airlines. Global Conference On Business & Finance Proceedings, 6(2), 629-636. Antoniou, A. (1992). The Factors Determining the Profitability of International Airlines: Some Econometric Results. Managerial And Decision Economics, 13(6), 503-514. Davila, A., & Venkatachalam, M. (2004). The Relevance of Non-financial Performance Measures for CEO Compensation: Evidence from the Airline Industry. Review Of Accounting Studies, 9(4), 443-464. Lee, C. (2008). Air Transportation 2009. TIER Industry Report - Air Transport, 1-6....
6 Pages(1500 words)Research Paper

### The Luxury Passenger Carrier

... for passenger train cars 45,000 passengers / 63 per train car = 714.29 passenger train cars needed per month to reach BEP e. Springfield Express has experienced an increase in variable cost per passenger to \$ 85 and an increase in total fixed cost to \$ 3,600,000. The company has decided to raise the average fare to \$ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of \$ 750,000? \$750,000 (after-tax profit) = \$205 (average fare) - \$85 (variable cost per passenger) - \$3,600,000 (total fixed cost) Add \$3,600,000 to both sides of equation and subtract variable cost from average fare \$4,350,000 = \$120 Divide each side by \$120 Therefore = 36,250 passengers per month are need...
3 Pages(750 words)Case Study

### Improving passenger safety

... Improving Passenger Safety At present, vehicles and car accidents have become one of the top ten causes of death in the world. Vehicles and car accidents have despoil a lot of people lives, those who we care about, our best friends and family members. Road traffic accidents are responsible for millions of deaths worldwide (Chaturvedi 116). Vehicles have become a threat to our society; especially in Qatar since the last year rate of car accidents have increased by 30%. However, we cannot eliminate the use of vehicles since they are our main transportation means, but we can always find a way to reduce the risk of accidents and injuries. The majority of road crashes are as a result of human error such as exceeding speed limit, ignoring...
6 Pages(1500 words)Essay

### Preexisting Duty

... The issue at hand is a consideration for modifying the terms of reference of the contract between Jones Construction and Duane Reade. In general, there are four requirements of a valid contract: agreement, consideration, contractual capacity and legality. Consideration is usually defined as the value given in return for a promise or for a performance. This can be further broken down into two parts, namely, the legally sufficient value in exchange for the promise and the bargained-for exchange. Under most circumstances, a promise to do what one already has a legal duty to do does not constitute legally sufficient consideration. This preexisting legal duty may be imposed by law or may arise out of a previous contract. Likewise, if a party...
1 Pages(250 words)Essay

### The Duty of Care

...Introduction: The Duty of Care Each of the possible claims in respect of both Crispin and Quentin’s injuries are tortuous and will depend on substantiating the existence of a duty of care in respect of each of the possible defendants. If it is established that a duty of care is owed by each of the defendants to Crispin and Quentin they are also required to prove that there was a breach of that duty of care. A duty of care can exist at both common and statutory law.1 In Donoghue v Stevenson, the doctrine of the ‘duty of care’ was established. Lord Buckmaster stated that ‘the law applicable is the common law…’ 2 This statement does not ignore the existence of a statutory duty of care. It recognizes that common law sets guidelines...
10 Pages(2500 words)Case Study

### Importance and Changes in the Level of Interest Rates to Banking and Insurance Sector in the UK

Indicatively, Ahiakport (2003, 42) noticed that “interest is compensation for the use of capital; not necessarily money”. Moreover, the above researcher mentioned that in general “quantity of money determines the supply of liquid resources, and hence the rate of interest, and in conjunction with other factors (particularly that of confidence) the inducement to invest” (Ahiakport, 2003, 55). In other words, interest rates are related to the capital both directly and indirectly. The direct relation refers to the increase of capital under the influence of specific interest rates, while the indirect relation can be assumed by the ‘attraction’ of foreign funds in a particular country due to high-inte...
14 Pages(3500 words)Term Paper

### Slaughterhouse Five or The Childrens Crusade - a Duty-Dance with the Devil

Although there are several major themes to be followed throughout the book, Vonnegut portrays his characters in such a way as to paint revenge as an integral part of the storyline. It is revenge that drives several of the characters to their actions in both war and peacetime and it is revenge that is presented as the motivation behind the Allied firestorm in Dresden. To fully understand the key roles revenge takes within the novel as it is shown through the actions of the characters and the various communities involved, it is also important to understand some basic ‘real-world’ understandings regarding the emotional act of revenge from a philosophical and psychological point of view. Vonnegut, a prolific and celebrated...
13 Pages(3250 words)Book Report/Review

Increased concentrations of effluents in the air were found to have particularly been emitted from motor vehicle exhausts, industrial factories, and other burning or combustion activities of Australians (Bartnett et al. 2006). Practically, any engine that utilized fossil fuel is known to be emitters of these effluents in addition to other activities that require burning of materials as have been broadly argued by different concerned sectors for the minimization of its usage, as well, finding alternatives which could be biodegradable fuels.

Air is humankind’s natural source of respiratory Oxygen. Its preservation may have been openly disregarded so that the current generation has to face up to the maintenance of it...
12 Pages(3000 words)Term Paper

### Securing Air Travel: EasyJet Airline

A company that was able to penetrate the European marketplace and increase its market share significantly is EasyJet Airline. Gasoline costs are the single biggest cost driver apart from labor in the airline industry (Investopedia, 2008). In order to survive the bad economic state of the industry companies have utilized strategies such as downsizing its workforce and streamlining its operations. To battle against rising fuel cost the use of newer fleets with higher better fuel efficiency has been imperative to decrease costs. There have newer regulations imposed by governments in the United States and Europe that affected the industry by raising environmental standards.
In Europe, many airlines have benefited from incre...
11 Pages(2750 words)Assignment

### Why Police Officers Killed in the Line of Duty

...Police Officers killed in the line of duty , why? lack of training , lax attitude and demographics of the killers verses officer I. Introduction The phenomenon of police officers losing their precious lives in the heat of confrontations with the criminals is not new in this country. But, has anyone ever deemed it appropriate to ask the following thought-provoking questions? Why? Is it because the police officers don’t have adequate training as expected? Or should the blame be shifted to the affected officer’s lackadaisical attitude to his/her duty? Or do such tragedies occur because the victims (killed officers) find themselves in an environment that is totally unfriendly and strange, and populated with people of different...
6 Pages(1500 words)Research Paper

### Air Traffic Control Security before 9/11 and after 9/11

Cyberspace is one of the most important tools that terrorists will use while planning an attack. Department of homeland security ensures that the cyberspace is protected to prevent terrorism from hacking into their systems. Homeland security ensures that firewalls are used in detecting any form of hacking into their systems. Most of the air-controlled systems are controlled and closely monitored to prevent terrorists from hacking them. This paper discusses the possible ways in which the department of homeland security is going to deal with the threat of hacking into government-controlled systems such as that of the airspace. The paper involves discussion on how security and training of the society are improved in order to detect a...
11 Pages(2750 words)Thesis Proposal

### Air Pollution in Beijing

...Air Pollution in Beijing Air pollution in the capital of China, Beijing, has overtime become an ever increasing issue among environmentalist and residents in China. Regrettably, any hopes of resolving this national calamity seems like just a mere dream. According to Beijing Municipal Environmental Monitoring Center, the current quality of air is reported to be above 300, which is considered hazardous by the World Health Organization. This is because dense smog hangs down the atmosphere affecting the people of Beijing. The monitoring stations observed that atmospheric particulates known as PM 2.5 are mostly responsible for air pollution in Beijing. The PM 2.5 can be described as small, invisible particles which affect and damage respiratory...
6 Pages(1500 words)Term Paper

### Impact of Portable Air Cleaners and Energy Use

... There are two general types of filters namely the mechanical and electrical filters. The mechanical filters capture the air particles passing through the filter. The normal furnace filter exemplifies the most common filter type. Secondly are the electrical charge filters. This type is often titled an electret. It uses electric currents to attract and capture certain pollutants. Since some particles in the air are charged, the electret will attract then in the opposite and let polarity do its action. The electric charge on the filter has no effect on the pressure drop hence there is no penalty for energy usage. Electrets are broadly used in motors to filter the air coming into certain passenger compartment (Macaluso 123). Indoor air...
12 Pages(3000 words)Literature review

### Reduction in Violent Crime Rates in El Salvador

...Reduction in Violent Crime Rates in El Salvador Module Group Module Assignment ID Number Table of Contents 1.0Introduction 3 2.0 Background 3 3.0 Presentation of Methods 4 3.1 Incarceration 4 3.2 Anti-gang Policies 4 4.0 Requirements 6 4.1 Cost 6 4.2 Effectiveness 6 5.0 Comparison of Methods 6 5.1 Cost 6 5.1.1 Incarceration 6 5.1.2 Anti-gang policies 7 5.2 Effectiveness 7 6. Conclusion 8 7. Recommendation 9 1.0 Introduction Violent crime is defined as the offences which involves force or threat of force. According to the Federal Bureau of Investigation’s (FBI), Uniform Crime reports, violent crime includes murder and nonnegligent manslaughter, robbery, aggravated assault and forcible rape. It has been estimated...
7 Pages(1750 words)Assignment