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From course:

Economics A Level

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Question:

What limits the Effectiveness of the Road Congestion Scheme

Author: go kys



Answer:

-Price set too Low leads to a Limited Impact on Traffic Levels -Prices set too High lead to Little Cars being covered by the Charge. This can Decrease Trade for Firms within the Congestion Charge Area, Under-Utilisation of the Road, and cause Congestion in other Areas -May also Impact the Poorest in Society, and put them off using Cars in the Future


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go kys
go kys