The curriculum areas where the transport model can add value are numerous and the following list highlights a few.

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This simulation is based on the externality of road congestion. It examines the factors that cause externalities (road congestion) and evaluates possible policy remedies. In particular, it highlights the use of regulation, taxation and extension of provision.

The simulation allows the students to develop their understanding of market equilibrium and the interrelationships between markets. There is particular reference to cross price elasticity, and the different types of relationships between goods (substitutes, complements). The model could also be used very effectively to consider the price elasticity of demand for different forms of transport. Students could be split into groups with each group looking at a different mode of transport. They could try a series of policy changes and try to identify the elasticities. They could then report back and use the elasticities as the basis for discussing the effectiveness of different policy responses.

The simulation defines and distinguishes between these two concepts. The model gives the changes to consumer and producer surplus as part of the results and these can be used to discuss the determinants of consumer and producer surplus. You can try different policies and compare the effects on consumer and producer surplus.

The simulation can also be used to show how external factors and government policy can impact on a firm. Students could be set tasks to try to identify the costs of different policy changes on firms, and then discuss how the firms may react to those changes.

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