ECO100 Principles Of Economics - Problem Solving Exercises End Short Report Writing

Question :3

The Australian Cycling Promotion Foundation (ACPF), Australia's peak bicycle promotion group, says it Experts the Promotion of Australians regularly riding bicycles to increase from 33% to 66% in the near future. The ACPF has hired you to write a persuasive economic report to support its request to the government to provide more incentives to encourage cycling as a moans of transport and maintenance of good health. Your report should include a discussion of the following (I) the cross-elasticity of demand between bicycle and motor vehicle, (II) the Income elasticity of demand for bicycles; and (Ili) factors other than the price of petrol that might have influenced and could influence demand for bicycles. Illustrate your report with demand and supply diagrams, whore appropriate. (Word limit for Question 3 only: 600 words]