Why Do Individuals Choose to Utilize Public Transportation Systems Rather Than to Own a Private Vehicle?
Man’s wants are limitless while his resources to fulfil those wants are limited. Not every individual who desires a vehicle can afford to purchase one. This is the main reason for the existence of Public Transportation Systems. Individuals may choose to buy the basic necessities over buying a luxury good such as a private vehicle. This directly relates to an economic principle referred to as Opportunity Cost, which explains what must be given up as the result of a choice. It is more economic for some to forego ownership of a private vehicle than to go without food, paying mortgage or paying bills.
Another economic principle that can be considered is the demand equation which is also linked to opportunity cost. The demand equation reflects that demand can be influenced by an individual’s income and taste, price of product and the price of other products.
Individuals earning a higher salary than most others may opt to buy a private vehicle for many reasons which may include comfort, safety, improved time management and control. Individuals who do not fall into this salary bracket may conclude that their income simply does not provide for such costs. License fees, prices of vehicles, insurance and maintenance all seems too demanding on individuals who earn a lower income. These are the individuals who utilise the Public Transport System the most and are appreciative of it.
There are some individuals, despite their level of income, who choose Public Transportation because they believe it is not necessary to own a private vehicle. These tend to be individuals who feel strongly about the environment. Public transportation diminishes the level of pollution in the environment which makes them activists for a greater cause.
The price of other products such as clothing, food, school fees etc. are relatively high. There are individuals who earn a high salary yet still cannot afford to buy a private vehicle. The price of other products also plays a big factor in
Another economic principle that can be considered is the demand equation which is also linked to opportunity cost. The demand equation reflects that demand can be influenced by an individual’s income and taste, price of product and the price of other products.
Individuals earning a higher salary than most others may opt to buy a private vehicle for many reasons which may include comfort, safety, improved time management and control. Individuals who do not fall into this salary bracket may conclude that their income simply does not provide for such costs. License fees, prices of vehicles, insurance and maintenance all seems too demanding on individuals who earn a lower income. These are the individuals who utilise the Public Transport System the most and are appreciative of it.
There are some individuals, despite their level of income, who choose Public Transportation because they believe it is not necessary to own a private vehicle. These tend to be individuals who feel strongly about the environment. Public transportation diminishes the level of pollution in the environment which makes them activists for a greater cause.
The price of other products such as clothing, food, school fees etc. are relatively high. There are individuals who earn a high salary yet still cannot afford to buy a private vehicle. The price of other products also plays a big factor in