Economics (AS & A Level) · May / June 2021 · Paper 11 · Question 13

A local government is deciding whether to increase car parking charges and provide more lanes for bus use only. One official said that the increase in car parking charges should cause more bus travel. A second official said that an increase in the frequency of bus services will cause demand for bus travel to fall. Are these official statements correct or incorrect?

1. Afirst statement correct; second statement correct
2. Bfirst statement correct; second statement incorrect
3. Cfirst statement incorrect; second statement correct
4. Dfirst statement incorrect; second statement incorrect

As printed in the paper