Question
A student has two mode choices to commute from their home to Vanderbilt. Their house is located 7 km from college. The details are
A student has two mode choices to commute from their home to Vanderbilt. Their house is located 7 km from college. The details are given below in the figure. The time value of student is $20/hour and value of attending a college is $200. (No points are given without intermediate steps) Student (value $20/hr) a) Calculate the utility Ucar Bus Speed = 25km/hr Car Speed = 50km/hr Mileage = 10km/litre Gasoline price = $2/litre Parking = $4 COLLEGE College (value $200) b) The student decides to take the bus. What is the minimum utility of taking the bus? c) The utility of taking the bus is determined to be $194. What is the bus fare?
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