SUPPOSE ON 30 SEPTEMBER 2003, THE INDIAN NATIONAL RAILWAYS (INR) UNILATERALLY LOWERED THE AC I CLASS PASSENGER FARE OF THE MUMBAI-DELHI RAJDHANI EXPRESS! FARE (PER 100 KM) AVERAGE DAILY SALE (RS. PRE- 09-03 POST-09-03 PRE-09-03 POST-09-03 INR 45 30 376836 448962 AIR 90 90 1037375 1207326 ASSUMING TRAVEL BY AIR AS THE ONLY ALTERNATIVE FOR HIGH-INCOME GROUPS, DO YOU THINK THAT A COMPUTATION OF THE OWN-PRICE ELASTICITY OF DEMAND FOR MUMBAI-DELHI TRAVEL BY RAJDHANI EXPRESS AS IN THE EARLIER CASE WILL YIELD THE CORRECT MEASURE?

/in /by

SUPPOSE ON 30 SEPTEMBER 2003, THE INDIAN NATIONAL RAILWAYS (INR)
UNILATERALLY LOWERED THE AC I CLASS PASSENGER FARE OF THE MUMBAI-DELHI
RAJDHANI EXPRESS!

FARE (PER 100 KM)    AVERAGE DAILY SALE (RS.

PRE- 09-03  POST-09-03  PRE-09-03 POST-09-03

INR 45      30             376836         448962

AIR 90       90           1037375       1207326


ASSUMING TRAVEL BY AIR AS THE ONLY ALTERNATIVE FOR HIGH-INCOME GROUPS,
DO YOU THINK THAT A COMPUTATION OF THE OWN-PRICE ELASTICITY OF DEMAND
FOR MUMBAI-DELHI TRAVEL BY RAJDHANI EXPRESS AS IN THE EARLIER CASE
WILL YIELD THE CORRECT MEASURE?

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