largely due to a rise in bus fares, a rise in income and changes in the price and quality of substitutes. On some In the UK, bus journeys outside London have fallen by nearly 40% since 1980. This fall in demand has been routes there are monopolies operating and this lack of competition can push up the price. (a) Define a substitute and give an example. (b) Explain two advantages a firm may gain from being a monopoly. (c) Analyse how price elasticity of demand for a product influences the revenue a firm receives. (d) Discuss whether or not a government should subsidise bus transport. [2] [4] [6] [8]