ECONOMICS PRESENTATION

ON PRICES OF BUS SERVICES IN DELHI TRANSPORT CORPORATION (DTC)

PRESENTED BY Heena Kauser Siddiqui C- 07 Hemant Shendre Rohan Adam Sourabh Bafna Vinamra Bandekar Vikram S Lawand

C- 08 C-25 C- 36 C- 39 C- 54

Guided by -

Prof Geetanjali Kapoor

DELHI TRANSPORT CORPORATION

Incorporated in May 1948 by the Indian

government
Operated by Municipal Corporation of Delhi until

the 2nd November 1971.

Later was transferred to the Government of

National Capital Territory, Delhi.

CONTD..
Main public transport operator of Delhi. Operates: around
Three

34 depots

Inter State Bus Terminals in Kashmiri Gate,

Sarai Kale khan and Anand Vihar.

Largest compressed natural gas-powered bus service

operator in the world.

The Case:
Talks about:
Problems faced by DTC.

How Delhi Government tried to improve the services

Renewal of license of private operators.

Frequency/Demand Function(Q)
Cost (C)

Functions Used:
Q = 8 0.4(P)

where,

P = average price charged in the bus or the average

bus

Q = trips in millions

Cost Function :
Cost of running and maintaining these buses

C = 480 + 3Q

Where,
Q = demand of buses calculated earlier

Problems for Discussion :

Under which market condition does Delhi Transport

Corporation?

Do you agree with the agreement of DTC officials

that there is a severe shortage of buses in Delhi? Can you calculate the percentage shortfall in demand for buses?

CONTD..
Do you agree with the argument that in the given

situation the DTC is earning losses? What is the total

value of losses?

If the DTC decides to increase the average bus fare to

Rs.10, what will be the percentage fall in excess demand be? Will there still be an excess demand for bus services?

CONTD
If the bus fare is increased to Rs.10, will the DTC

stop earning losses? If not, what will be the percentage fall in losses be?

Given the above situation, what is the optimal price

at which DTC will break even?

With the hike in bus fare if there is actually a

substantial fall in the demand for buses how will it affect the market conditions under which the DTC operates?

CONCLUSION
Will the increase in bus fares result in more private

vehicles on the citys roads?

- A study by the Centre for Transforming India (CFTI), a south Delhi-based non-government organization, reveals a gradual shift of about 20 per cent bus commuters to their private vehicles in the next six months.

WEBLIOGRAPHY www.wikipedia.com www.google.com www.dtc.nic.in

www.silobreaker.com
Case discussed in Managerial Economics by

Sumitra pal.

THANK YOU