1.9. In the town of Freedonia, the government declares that all street parking must be free:

There can be no parking meters. In an almost identical town of Meterville, parking costs

$5 per hour (or $1.25 per 15 minutes).

a. Where will it be easier to find parking: in Freedonia or Meterville?

90 • PART 1 • Supply and Demand

b. One town will tend to attract shoppers who hate driving around looking for parking.

Which one?

c. Why will the town from part b also attract shoppers with higher incomes?