BUS 513 The price to drive on a freeway is zero at all times of the day
Question # 00326032
Posted By:
Updated on: 06/27/2016 07:28 AM Due on: 06/27/2016
The price to drive on a freeway is zero at all times of the day. This price establishes equilibrium at 3 a.m. but is too low to establish equilibrium at 5 p.m. There is a shortage of freeway space at 5 pm.
A. Graphically show and explain how carpooling may eliminate the shortage and explain your answer.
B. Graphically show and explain how building more freeway may eliminate the shortage and again explain your answer
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Rating:
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Solution: BUS 513 The price to drive on a freeway is zero at all times of the day