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How to solve for equilibrium price in this question? Homework #1 0 Saved 6 14.28 points. skipped References From California to New York, legislative bodies
How to solve for equilibrium price in this question?
Homework #1 0 Saved 6 14.28 points. skipped References From California to New York, legislative bodies across the United States are considering eliminating or reducing the surcharges that banks impose on noncustomers, who make $14 million in withdrawals from other banks' ATM machines. On average, noncustomers earn a wage of $20 per hour and pay ATM fees of $3.25 per transaction. It is estimated that banks would be willing to maintain services for 5 million transactions at $1.25 pertransaction, while noncustomers would attempt to conduct 22 million transactions at that price. Estimates suggestthat, for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traveling to another machine to withdraw cash. Based on this information, what would be the nonpecuniary cost oflegislation that would place a $1.25 cap on the fees banks can charge for noncustomer transactions? Instructions: Enter your responses rounded to the nearest penny [two decimal places). $ What would be the full economic price ofthis legislationStep by Step Solution
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