Cross elasticity: High speed rail and oil prices

Forget a third runway at Heathrow, we need another Terminal at St Pancras! That is the message from Carl Mortished in his world business briefing in the Times this week. Demand for hi-speed rail services is soaring as people desert short-haul flights in response to the fuel surcharges and hassle of getting through security. Traffic growth on Eurostar has increased by over a fifth in the first quarter of 2008 and revenues are up by more than 25%. Consumers are realising the advantages of travelling by hi-speed rail for cities 600 miles or less apart. His article is here:

High-speed trains seize short-haul market as fuel cost cripples the airlines

Unit 2 Macro: Cyclical and Structural Economic Issues Facing the UK [23 May 2012]
Unit 2 Macro: Positive and Negative Multiplier Effects [20 May 2012]
Unit 2 Macro: The Importance of Productivity [20 May 2012]
Q&A: What do we need to know about output gaps? [20 May 2012]
Unit 2 Macro: The Output Gap [20 May 2012]
Unit 1 Micro: Revision Presentation on Elasticity of Demand [16 May 2012]
Unit 1 Micro: Income Elasticity of Demand [13 May 2012]
Unit 1 Micro: Price Elasticity of Demand [13 May 2012]
Unit 2 Macro: Aggregate Demand Glossary [5 May 2012]
Macro Revision - Key Statistics on the UK Economy [4 May 2012]
Unit 1 Micro: Using the Cost-Benefit Principle [30 Apr 2012]
Macro Revision: Putting Things in Context [29 Apr 2012]
Unit 2 Macro: Heathow’s Capacity and Connectivity Crunch [22 Apr 2012]
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Unit 2 Macro: Skills Shortages Hold Back Recovery [12 Apr 2012]
Unit 1 Micro: Revision on Elasticity of Demand (for Rice) [3 Apr 2012]
Unit 1 Micro: Revision on Maximum Rents in Housing [1 Apr 2012]
Unit 1 Micro: Revision on Producer Cartels [31 Mar 2012]
Unit 4 Macro: Evaluating 3 Years of Quantitative Easing [27 Mar 2012]
Unit 1 Micro: Government launches New Buy Loan Guarantee Scheme [12 Mar 2012]
Martin Wolf on Global Shocks [10 Feb 2012]
Russia’s monopoly power over gas supplies [5 Feb 2012]
Unit 2 Macro: Focus on China - Inflation [26 Jan 2012]
Unit 2 Macro: Focus on China - Per Capita Incomes [26 Jan 2012]
Unit 2 Macro: Factors Driving Business Investment [10 Jan 2012]
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Unit 3 Micro: Brand Loyalty in Mobile Phones [27 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
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Unit 3 Micro: Economies of Scale and the Kinect [31 Oct 2011]
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Unit 2 Macro: Economic Importance of Investment [19 Oct 2011]
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Unit 2 Macro: UK suffers a weak recovery [12 Oct 2011]
Unit 2 Macro: Homework Assignment on Consumer Spending [3 Oct 2011]
Unit 1 Micro: Homework Assignment on Market Prices [2 Oct 2011]
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Unit 1 Micro: Exercise on Equilibrium Market Prices [27 Sep 2011]
Unit 1 Micro: Exercise on Market Demand [25 Sep 2011]
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A2 Macro: Consumer Spending [30 May 2011]
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AS Macro Key Term: Deflation [24 May 2011]
AS Macro Key Term: Economic Recovery [23 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Macro Key Term: Spare Capacity [23 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: High and Low Marginal Cost Products [19 May 2011]
A2 Micro: Examples of Price Discrimination [19 May 2011]
Unit 3 Micro: Perfect Competition [19 May 2011]
A2 Micro: Competition and Efficiency [19 May 2011]
A2 Micro: Innovation and Economic Policies [18 May 2011]
A2 Micro: Innovation Efficiency and Welfare [18 May 2011]
A2 Micro: Minimum Efficient Scale [18 May 2011]
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AS Micro: What´s really behind the oil price rise? [10 May 2011]
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AS Micro: Rising Global Food Prices [2 May 2011]
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AS Micro: Mock Exam Question on Sugar Prices [28 Apr 2011]
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AS Micro: Importance of Elasticity of Supply [23 Apr 2011]
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Key AS Micro Terms: Prices [15 Apr 2011]
AS Macro Key Term: Seasonal Unemployment [10 Apr 2011]
AS Macro Key Term: Double-Dip Recession [8 Apr 2011]
AS Macro Key Term: Fiscal Austerity [6 Apr 2011]
AS Macro Key Term: Current Account Deficit [2 Apr 2011]
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Economics Q&A: How might rising food prices affect food retailers and manufacturers in the UK? [16 Jan 2011]
Economics Q&A: What economic factors affect the demand for new cars? [9 Jan 2011]
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