Emina Local Government Council runs a bus service and a city cabs service. Presently the working population of the local council without personal cars are estimated at 50,000. This army of commuters use the two transport systems provided by the local government. The authorities want to invest more on the system that is likely to command more commuters in the future and has asked you for help. They estimated that of those who made use of the bus service the previous month 18% of them want to make use of the cab services, while 22% of those who made use of thecab services wants to try the bus service. Currently, the two services share the commuters on a 45% to 55% basis for the bus and car respectively.

1) What will be the market share of the two services in 5 months time?

2) Compute the equilibrium market share for the bus and cab services and give your answer in: a) Percentage; b) Number of commuters.

3) If a cab and a bus can carry a maximum of 4 and 42 passengers per trip respectively and all the commuters move at the same time during rush hours, how many cars and buses will be required to satisfy the commuter needs of Emina local government after the equilibrium is reached?