"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:

Retrograde Ejaculation

A situation in which, instead of being expelled through the urethra during ejaculation, semen is redirected into the bladder.

Ejaculation

The expulsion of semen from the male reproductive tract as a result of an orgasm.

Emission

The first stage of ejaculation, in which sperm and semen are propelled into the urethral bulb.

Sperm

Male reproductive cells responsible for fertilization of the female ovum, leading to pregnancy.