SteamScot Increasing Its Supply of Rail Journeys

Subject: Industry
Pages: 1
Words: 252
Reading time:
< 1 min

The non-price determinants are Government policies, population change, advertising, mechanization and computerization, other related products. The first factor that will trigger SteamScot to increase its price is the cost of maintenance, renovation, and expansion. SteamScot is currently planning to renovate its existing infrastructure. If the price of the materials necessary for improving their existing infrastructure is high, then they will be compelled to increase their prices. Another factor is the price of other modes of transport like the use of the road. If the price for buses is increased, the tourists will opt for the railroad. An increase in the price of other modes of transport will make customers go for SteamScot’s services. Management of SteamScot may take advantage of this to increase their prices.

Mechanization and computerization may also affect the supply. If SteamScot employs computerization and mechanization in issuing tickets, the costs associated with production may reduce. This will subsequently lead to an increase in demand. SteamScot may be encouraged to increase its supply if they embark on effective advertising for its services. This is because advertising would create more demand for their services. An increase in population will create a general demand for transport services. This will subsequently encourage SteamScot to increase its supply. Government policies highly affect the price of products. Should the government decide to impose more tax on transportation services, suppliers’ cost of production will increase. SteamScot will then be forced to increase the price of its services.