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3) [25 points] There are two routes for driving from A to B. One is a freeway, and the other consists of local roads. The
3) [25 points]There are two routes for driving from A to B. One is a freeway, and the other consists of local roads. The benefit of using the freeway is constant and equal to1.8, irrespective of the number of people using it. Local roads get congested when too many people use this alternative, but if not enough people use it, the few isolated drivers run the risk of becoming victims of crimes. Suppose that when a fractionxof the population is using the local roads, the benefit of this mode to each driver is given by
1 + 9x-10x^(2)
- [5 points]Draw a graph showing the benefits of the two driving routes as functions ofx, regardingxas a continuous variable that can range from 0 to 1. (Usexas the horizontal axis as the figures in the textbook. You can use a graphing calculator or online tools to graph and solve the quadratic equation.)
- [15 points]Identify all possible equilibrium traffic patterns from your graph in part (a). Which equilibria are stable? Which ones are unstable? Why? You need to explain your reasoning to get credit.
- [5 points]Write the function representing total social payoff to the whole population.
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