How Supply and Demand Drive the Transportation Industry

            How Supply and Demand Drive the Transportation Industry Name Institution                             How Supply and Demand Drive the Transportation Industry Table of Contents Introduction…..…………………………………………………………..................................…3  The Nature of Transport 3 Transport Supply and Demand. 3 Role of Supply and Demand. 5 Conclusions. 7 References. 8                                
 Introduction The need for extra capacity has been mentioned in anticipation of rising transportation demand for both individual trips and goods transportation due to population and employment expansion and to support expansion in trade and tourism.  The supply and demand has a big effect on the possible future transportation capability deficiencies. In order to understand how the transport sector works, it is first paramount to understand how it is affected by the supply and demand characteristics. In general, each transport mode is meant to fulfill a resultant transport demand and for that reason each transport method is meant to support mobility. The Nature of Transport             Ideally, transportation is a market that is made up of providers of transport services and the individuals that use these services. Operational transport markets should have a scenario where the transport supply meets the transport demand in order to ensure that the transport needs for mobility are met. An economic system that is consistent of various activities located in diverse areas brings about movements that must have the support of the entire transport system. Without being able to move around, the available infrastructures would not take place or if it does, it would not happen in a cost effective manner. This interconnectedness can be considered according to the concept of supply and demand (Gray, 2012). Transport Supply and Demand              Transport supply refers to the capability of transportation systems and model over a geologically defined transport system and for a specified period of time. Supply is explained in terms of capacity, how often it is used as well as the area that is covered. Capacity is usually appraised in terms of fixed and dynamic terms where the fixed capability refers to the amount of space that is availed for transport while the dynamic capability refers to the enhancement that can be made through superior expertise and administration. The total number of passengers as well as the volume that can be transported at any given time is meant to calculate the transp...