1)On March 31, President Biden announced his plan for an infrastructure bill. You can read more about it here: https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/ One of the goals of this proposal is to modernize public transit with the ultimate goal of reducing congestion to everybody.

(a)When making traveling decisions how to individuals make their choices?

(b)What is the source of the market failure?

(c)What is the most direct way of correcting such market failure?

(d)Can public transit reduce traffic congestion?