"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.

---

Definitions:

Dementia

A broad category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, affecting daily functioning.

Neural Tissues

Specialized tissues that constitute the central and peripheral nervous systems, responsible for transmitting signals throughout the body.

Cranial Nerves

A set of twelve nerves that originate in the brain and are primarily responsible for motor and sensory functions of the head and neck.

Auditory

Pertaining to the sense of hearing or the organs and structures involved in the process of hearing.