Frequency of services affects the forces of demand and supply of the services and will have bearing on the?

Increase in service frequency increase the cost of transportation.

Each transport more shares the common goal of fulfilling a derived transport demand, and each transport mode thus fills the purpose of supporting mobility. Transportation is a service that must be utilized immediately since unlike the resources it often carries, the transport service itself cannot be stored. Mobility must occur over transport infrastructures having a fixed capacity, providing a transport supply. In several instances, transport demand is answered in the simplest means possible, notably by walking. However, in some cases elaborate and expensive infrastructures and modes are required to provide mobility, such as for international air transportation.Transportation is a market composed of suppliers of transport services and users of these services. Well-functioning transport markets should allow transport supply to meet transport demand so that transport needs for mobility are satisfied. An economic system including numerous activities located in different areas generates movements that must be supported by the transport system. Without movements infrastructures would be useless and without infrastructures movements could not occur, or would not occur in a cost efficient manner. This interdependency can be considered according to two concepts, which are transport supply and demand:Transport supply. The capacity of transportation infrastructures and modes, generally over a geographically defined transport system and for a specific period of time. Supply is expressed in terms of infrastructures (capacity), services (frequency) and networks (coverage). Capacity is often assessed in static and dynamic terms where static capacity represents the amount of space available for transport (e.g. terminal surface) and dynamic capacity are the improvement that can be made through better technology and management. The number of passengers, volume (for liquids or containerized traffic), or mass (for freight) that can be transported per unit of time and space is commonly used to quantify transport supply. Transport demand. Transport needs, even if those needs are satisfied, fully, partially or not at all. Similar to transport supply, it is expressed in terms of number of people, volume, or tons per unit of time and space. The supply side of the transport market can be divided into two categories:

• Third-party transportation. Transport companies offer transport services to users who require such services, often on open markets. Transport users pay for the services delivered according to the terms of the agreed contract. Examples include third-party trucking companies, container shipping lines, railway operators and bus companies. Competitiveness is a key advantage of third-party transportation as providers strive to offer better and lower cost services for their customers. There is also the risk of fluctuating prices due to changing market conditions and that transport capacity may not be available when a customer requires it.
• Own account transportation. The transport user deploys his own transport means to move freight or to travel (e.g. motorists using private cars or large industrial companies owning a fleet of trucks or rail wagons). The transport user has a direct access to a known capacity, but at the risk of a lower level of asset utilization (e.g. empty movements or idle equipment).

Transport demand is generated by the economy, which is composed persons, institutions and industries and which generates movements of people and freight. A distinction can be made between consumptive and productive transport needs. Productive transport needs have a clear economic focus. For example, the transport of semi-finished products from one production site to the final production or assembly site creates added value in the production process by benefiting from the locational advantages of each of the production sites. Consumptive transport needs generate less visible added value. For example, a road trip does not really add value in a pure economic sense, but generates subjective utility and satisfaction to the users. A discussion on the functioning of transport markets is particularly relevant where it concerns the fulfillment of productive transport needs, but the consumptive dimension of transport must also be considered.The location of resources, factories, distribution centers and markets is obviously related to freight movements. Transport demand can vary under two circumstances that are often concomitant; the quantity of passengers or freight increases or the distance over which these passengers or freight are carried increases. Geographical considerations and transport costs account for significant variations in the composition of freight transport demand between countries. For the movements of passengers, the location of residential, commercial and industrial areas tells a lot about the generation and attraction of movements.

Answer is option 1) Delivery _------------------

Delivery may met, but at very high cost, which is not a good sign on services

I fully agree with the answers been added by EXPERTS................Thanks.

agree with all colleagues answers