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West Rail vs. Bus - Lingnan University Library

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Also in general, increase in substitutes of transportation will lead to a higher<br />

price elasticity of demand. Price elasticity of demand measures the responsiveness of<br />

quantity demanded to a change in price, with all other factors held constant (Quick<br />

MBA, 2004). Passengers can have one more choice for traveling when a new<br />

transportation system is introduced. Their sensitivity toward the fare will increase as<br />

they can compare the fares of different transportation systems. An increase in fare will<br />

lead to a higher decrease in the quantity demanded.<br />

In order to determine the impact of increase in substitutes by introducing of<br />

<strong>West</strong> <strong>Rail</strong>, it is important to determine the path availability of different areas in <strong>West</strong><br />

New Territories by comparing the difference in price and time for different paths.<br />

Appendix 1 shows the tables of path availability, the total fare and the approximate<br />

traveling time of nine different places in <strong>West</strong> New Territories to urban areas. These<br />

nine places are chosen because <strong>West</strong> New Territories cover a large area. Also all the<br />

places are densely populated. Eight places in urban area are being chosen as the<br />

destination deal to their popularity. <strong>West</strong> New Territories’ residents often go to these<br />

urban areas for recreation or work purposes. Comparing those places in New<br />

Territories and Urban areas can ensure the accuracy and the typical of the path<br />

availability.<br />

Appendix 1 shows that the path availability of different places is quite<br />

12

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