Chapter 3, Problem 1FCT

To determine

The analysis of demand in markets for barge, truck and rail transportation

Concept Introduction:

Law of Demand- The neo-classical economist, Alfred Marshall established an inverse relationship between price and quantity demanded, assuming ceteris paribus or keeping all other variables constant. The demand curve is accordingly a downward sloping curve from left to right keeping the price on the Y-axis and quantity demanded on the X-axis

Increase/Decrease in demand- Change in demand consequent upon a change in the factors other than price cause the demand to increase or decrease. Change in income, wealth or preferences of the consumers, for example, are factors that lead to a change in the demand among other factors. Prices remaining unchanged, these factors cause the demand curve to shift inward or outward.