The Chunnel auto tunnel allows motorists to travel between England and France. As an alternative, there is ferry service across the English Channel. What would happen in the market for ferry service if fees for using the Chunnel were increased?
A) The demand for ferry service would increase.
B) The demand for ferry service would decrease.
C) There would be an upward movement along the demand curve for transits through the Chunnel.
D) There would be a downward movement along the demand curve for transits through the Chunnel.

Question

Quizplus · Accepted Answer

If the fees for using the Chunnel were increased, some travelers would likely seek alternative means of crossing the English Channel, leading to an increase in demand for ferry services as they become a more attractive option compared to the more expensive Chunnel.

The Chunnel Auto Tunnel Allows Motorists to Travel Between England