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please reference textbook
Transportation: A Global Supply Chain Perspective Coyle, John J.
- Discuss the concept of transportation demand in relation to derived demand and its importance in the area of transportation for shippers and carriers. Provide at least two examples. Explain the difference between elastic and inelastic demand. The aggregate demand for transportation service is said to be inelastic while the demand for an individual mode or carrier is often elastic. Explain why this is important to carriers and shippers and why the two concepts are important to transportation demand.
- Discuss the relationship between improved transportation, land values, benefits, and possible associated environmental costs. Provide examples of potential positive, as well as negative impacts.
- Transportation policies directing and promoting transportation safety reliability, and national security have been in place on the federal level since 1887. Research two federal agencies and discuss specific regulations and public policy enforced today. From a point of view of providers and transportation users, discuss the advantages and disadvantages of increasing regulations relating to transportation safety and security. Substantiate your discussion with specific examples and provide links to your sources.
- Discuss value-of-service pricing and cost-of-service pricing. Expand your answer with a discussion of how the two concepts are related and provide relevant examples to substantiate your answer. Be sure to provide references.
Explanation & Answer
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1. Discuss the concept of transportation demand in relation to derived demand and its
importance in the area of transportation for shippers and carriers. Provide at least two
examples. Explain the difference between elastic and inelastic demand. The aggregate
demand for transportation service is said to be inelastic while the demand for an
individual mode or carrier is often elastic. Explain why this is important to carriers and
shippers and why the two concepts are important to transportation demand.
Answer:
The concept of transportation demand in relation to derived demand is that the demand
for goods and services that is generated as a result of the demand for other goods and
services. This type of demand usually corresponds to the demand for factors or products,
since the demand for a good or service may be related to the process necessary to produce
another good or service, although it may affect both producers and consumers. Derived
demand can sometimes lead to an increase in the price of a marginal product, since the
demand for the resources necessary to produce a physical product also increases.
Transport is closely related to the economy. For example, the demand for a good produced
elsewhere leads to an increase in the demand for transport services. As the demand for
cars increases, so does the demand for different steel parts produced for the assembly of
the same, which also means that demand from the steel sector increases (Coyle, J.,
Novack, Gibson, & Bardi, 2013).. There is also derived demand at consumption level. Let
us give an example. The purchase of a jug of water that filters the water. With the
purchase of this type of product will also be increased the purchase of the filters necessary
for its use. Elastic demand is one that when changing the price of a good or service this
can immediately affect consumer behavior taking into account the level of income,
changes in tastes and preferences that influen...
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