CE Economic

quality of bus service increase → demand for bus increase → demand for taxi decrease

你的想法是對，只不過你去得太遠啦。當demand for bus increase時，相對地demand for taxi will decrease。(不過，無疑佢地係 substitute。)

而且，bus service 有時係政府會干涉，因為bus service 話哂都係 for public interest. 佢唔係因demand 多咗，佢就話加價就加價。

就算要加價，政府都會出面干涉一下，例如私底給津貼一樣，那price 對customers來說就無變。

price 要increase 唔係咁易，考慮因素要好多(例如：可能會失客源)。好似澳門咁，suggest 加價市民就嘈到死。

--> Quality of bus service increases
--> Demand for bus service increases
--> Bus service and Taxi Service are substitutes
--> Demand for taxi service decreases

Bus fare cannot be raised while there is the increase in demand for bus services
because bus fare is affected by the decision of approval by the government. FOr exmaple, recently, KMB may ask for the government to approve the icnrease in bus fare, but the governemnt has the right to object it.

Leo Sir
http://hk.myblog.yahoo.com/leoleekh