In this video, Dr. Natalia Barbour discusses economics of fuel price and the concept of elasticity. You will learn about elasticities and why they are important in constructing effective transport policies.

Key takeaways:

1. There are various factors that contribute to the value of travel time.
2. Price elasticities and cross elasticities can be used to estimate effectiveness of price related policy, also across different modes of transport.
3. There are four constraints of optimal allocation of consumer expenditures: income, desired comfort, prices of goods and services and time.