ECO100 Principles Of Economics Management - Assessment Task 3

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Assessment 3: Individual Work

Question No. 3

The Australian Cycling Promotion Foundation (ACPF). Australia's peak bicycle Promotion group, says it expects the proportion of Australians regularly riding bicycles to Increase from 33% to 66% in the near nature. 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 means of transport and maintenance of good health. Your report should Include a discussion of the following: (i) The cross-elasticity of demand between bicycles and motor vehicles: (ii) The income elasticity of demand for bicycles: and (iii) 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, where appropriate. (Word limit for Question 3 only: 600 words)

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