The Chunnel Auto Tunnel Allows Motorists to Travel Between England

question 223

Multiple Choice

The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?

• A) The demand for ferry service would increase.
• B) The demand for ferry service would decrease.
• C) There would be an upward movement along the demand curve for transits through the Chunnel.
• D) There would be a downward movement along the demand curve for transits through the Chunnel.

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Definitions:

Problem Recognition

The first step in the consumer decision-making process, where a consumer identifies a need or problem that needs to be solved.

Alternative Evaluation

The phase in the consumer decision process where individuals assess the benefits and drawbacks of different choices available to them before making a purchasing decision.

Antecedent States

Preceding conditions that influence individuals' behavior or attitudes in a particular context.

Evaluative Criteria

The characteristics, attributes, or dimensions that consumers use to compare and judge the merits and drawbacks of products and services.