Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Consider the following data table for a commuter making a modal choice between auto, bus and fixed rail in the town of Bigville. The

4.Consider the following data table for a commuter making a modal choice between auto, bus and fixed rail in the town of Bigville. The commuter's wage is $12/hour or $.20/minute.Notice the calculations here suggest that auto will be the chosen mode.

a.How much of a reduction in line-haul time would be necessary to make fixed rail the chosen mode?

b.Is there a fare reduction that can make bus the chosen mode?If so how much would it be?

c.How much of an increase in parking fees would be necessary to make auto no longer the chosen mode?Which mode would now be chosen?

d.What happens to the modal choice if the rider has a wage of only $9 per hour?

image text in transcribed
Modal Choice Auto Bus Fixed Rail Collection time 0 10 15 Cost / minute .3 = 1.5 * wage .3 .3 Collection cost 0 3.00 4.50 Line-haul time 40 50 30 Cost / minute 10 = .5 * wage 10 10 Line-haul cost 4,00 5.00 3.00 Distribution time 0 5 9 Cost / minute .3 .3 Distribution cost 0 1.50 2.70 Total time costs 4.00 9.50 10.20 Monetary costs Operating cost or fare 2.00 1.00 1.50 Parking 3.00 0 0 Total $9.00 $10.50 $11.70

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Public Expenditure Decisions In The Urban Community

Authors: Howard G Schaller

1st Edition

1317310985, 9781317310983

Students also viewed these Economics questions