Question
1. A typical individual's demand for the number of trips in a month on a bridge is p = 5-q. If there is no charge
1. A typical individual's demand for the number of trips in a month on a bridge is p = 5-q. If there is no charge for the trips made, what will be the number of trips made by the individual in a month? Now suppose, the bridge authorities issue bridge passes for a fixed fee of $12.5 a month regardless of the number of trips made. How many trips the individual will now make? Explain.
2. A recent newspaper circular advertised the following special on tires: "Buy three, get the fourth tire for free - limit one free tire per customer." If a consumer has $360 to spend on tires and other goods and each tire usually costs $40, how does this deal impact the consumer's opportunity set? Explain.
hi they are two separate questions
thanks
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