Two countries Singapore and U.S.reduced the traffic on roads, in different ways In Singapore, the government made it compulsory for all new vehicles and existing vehicles to buy an add on prepaid card to travel. During the times for peak hours on roads, the charges would escalate and get automatically deducted, and in off peak hours, there would be less congestion charges. On new vehicles, Singapore charged 20 percent duties. In U.S., the government subsidised public transport by reducing fares on public transport by 30 percent, and increased the number of trams, tubes, and buses. As a result, the traffic on road fell substantially. Explain what is the difference between the two approaches using the principles of demand and supply? Use a well labelled diagram to show the difference between the two.
Two countries Singapore and U.S.reduced the traffic on roads, in different ways In Singapore, the government made it compulsory for all new vehicles and existing vehicles to buy an add on prepaid card to travel. During the times for peak hours on roads, the charges would escalate and get automatically deducted, and in off peak hours, there would be less congestion charges. On new vehicles, Singapore charged 20 percent duties. In U.S., the government subsidised public transport by reducing fares on public transport by 30 percent, and increased the number of trams, tubes, and buses. As a result, the traffic on road fell substantially.
Explain what is the difference between the two approaches using the principles of demand and supply? Use a well labelled diagram to show the difference between the two.
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