1. The Economist (July 1, 1989) reported that the London Underground system was in crisis: the subway system carried 60% more passengers in 1987 - 88 than in 1982. Capacity, however, has increased but 10%. The result is severe overcrowding and train delays.
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3. a. One solution for relieving the congestion is to raise the price to all passengers. The received wisdom, reported by The Economist, is that a 10% hike in fares would reduce ridership immediately by 2%. If the London Underground had a goal of reducing ridership by 3% what would need to happen to the current average 50p price?