"The Operator of the Tunnel That Links Britain and France

question 76

Essay

"The operator of the tunnel that links Britain and France, Eurotunnel, said that commercial and tourist traffic using its car and coach shuttle service had fallen sharply in 2004, leading to a drop in operating revenues of 4%. Eurotunnel's chief executive, Jean-Louis Raymond, blamed cut-throat competition from budget airlines." (news story, January 2005)
a.If Mr. Raymond is correct, are the services of airlines and Eurotunnel substitutes or complements?
b.Use demand and supply analysis to explain how lower airfares between Paris and London impact the market for the shuttle services of Eurotunnel.

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Definitions:

Regulating Distress

The process of managing and controlling negative emotions or stress to maintain psychological well-being.

Adaptive Change

Adjustments made in response to new conditions, challenges, or opportunities, requiring flexibility and innovation.

Leader's Responsibility

The obligations and duties a leader has to guide and protect those under their leadership.

Adaptive Behavior

Involves adjusting effectively to new or changing environments and situations, demonstrating flexibility and resilience.