Questions 1. (2.5 pts) Based on the figure showing estimated elasticities after the price increase, what times of day have the most elastic parking demand? Why do you think this might be the case? 2. (2.5 pts) Based on the figure showing estimated elasticities after the price increase, what times of day have the most inelastic parking demand? Why do you think this might be the case? 3. (5 pts) In Table 4, you can note that average parking turnover decreased across all neighborhoods regardless of whether the price increased, decreased, or stayed the same. Should this affect the way you interpret the decrease in parking turnover where there were price increases? Why or why not? 4. (5 pts) Calculate the average parking rate duration elasticity separately for neighborhoods where there was a price decrease and a price increase. Show your work. Hint: just use the average price in 2010 and average price in 2011 for the neighborhoods as a group in Table 3 to get an aggregate price for the percentage change calculation 5. (5 pts) Is the parking rate duration elasticity elastic, inelastic, or unit elastic in these neighborhoods. If you were a policy maker who wanted to decrease parking rate duration by 10% in those neighborhoods to increase turnover, what size price increase would be needed in the increased rate and decreased rate neighborhoods? 6. (5 pts) Table 7 shows that revenue declined in neighborhoods where there was a price decrease and increased in those neighborhoods where there was a price increase. What does this imply about whether parking demand was elastic or inelastic in those neighborhoods? How do you know that? 7. (5 pts) Based on estimated elasticities in Table 3, would it increase parking revenue in all neighborhoods to increase prices? How do you know that? 8. (20 pts) Envision you are a business in the First Hill neighborhood. You own a popular restaurant that relies primarily on customers driving from other parts of Seattle. You know the average customer group in your establishment stays for an average of 90 minutes (1.5 hours), spends $100, and you on average sees 100 customer groups (arriving in the same car) each day. Make a quantitative argument of how much an additional $1.00 increase in hourly parking rates would affect your business (assume the elasticities and estimates shown in the tables would be the same over this price range as well). Generate a dollar amount estimate of how the parking rate increase would affect your sales. Come up with a number or numbers, show your work, and explain in words your reasoning how you came up with that number. Hint: Elasticity = % change in outcome variable/% change in treatment variable You can use this formula to come up with almost all the numbers you'll need for #8 if you combine it with the values given in the question and the estimated elasticities in the tables, Revenue is simply price times quantity. Think how the parking rate change affect those variables.

O 0 0 Legend Neighborhoods RateChanga [S] \"ll IAIEEEEEE.\" .7 = Fig.2. New rates and rate changes in each neighborhood within the study area in Seattle. Numbers before the "slash" represents the new rate, the number after the \"slash" represents the rate change 0 0 Table 5 Comparison of the average parking duration per vehicle before and after the parking rate changes in the decrease. increase and no change rate neighborhoods. Neighborhoods Duration 2010 (min) Duration 2011 (min) Difference (min) Decrease 69.24 71.25 2.01 Increase 71.61 66.20 5.42 No change 59.61 60.39 0.78 Table 6 Comparison of an average parking turnover rates by a typical weekday during noon hours [between 12 and 14 pm) before and after the parking rate changes in the increase. decrease rate and the no change rate neighborhoods. Neighborhoods Turnover 2010 Turnover 2011 Percentage change (913) Decrease 3433 3415 0.54 Increase 3484 3470 0.40 No change 1723 1583 8.12 Note: Just assume the change in parking turnover above in Table 6 is for the whole day if that helps in any of your calculations. lame '/ Comparison of average revenue generation per day from the parking stations in our study area before and after the parking rate changes in the increase. decrease and the no change rate neighborhoods. Neighborhoods Revenue 2010 [5) Revenue 2011 ($) Percentage change [96) Decrease 25.354 18,802 25.84 Increase 24.583 32.745 33.20 No change 10,739 10,035 43.56 Data and information used to create these questions were obtained from: Qttggsgn, D. B., Chen, C., Wang, T., 8. Lin, H. {2013}. The sensitivity of on-street parking demand in response to price changes: A case study in Seattle, WA. Transport Policy, 25, 222-232. Questions 1. {2.5 pts) Based on the gure showing estimated elasticities after the price increase, what times of day have the most elastic parking demand? Why do you think this might be the case? 2. {2.5 pts) Based on the gure showing estimated elasticities after the price increase, what times of day have the most inelastic parking demand? Why do you think this might be the case? 3. (5 pts) In Table 4, you can note that average parking turnover decreased across all neighborhoods regardless of whether the price increased, decreased, or stayed the same. Should this affect the way you interpret the decrease in parking turnover where there were price increases? Why or why not? 4. (5 pts) Calculate the average parking rate duration elasticity separately for neighborhoods where there was a price decrease and a price increase. Show your work. Hint: just use the average price in 2010 and average price in 2011 for the neighborhoods as a group in Table 3 to get an aggregate price for the percentage change calculation 5. (5 pts) Is the parking rate duration elasticity elastic, inelastic, or unit elastic in these neighborhoods. If you were a policy maker who wanted to decrease parking rate duration by 10% in those neighborhoods to increase turnover, what size price increase would be needed in the increased rate and decreased rate neighborhoods? 6. (5 pts) Table 7 shows that revenue declined in neighborhoods where there was a price decrease and increased in those neighborhoods where there was a price increase. What does this imply about whether parking demand was elastic or inelastic in those neighborhoods? How do you know that? 1'. (5 pts) Based on estimated elasticities in Table 3, would it increase parking revenue in all neighborhoods to increase prices\"? How do you know that? 8. (20 pts) Envision you are a business in the First Hill neighborhood. You own a popular restaurant that relies primarily on customers driving from other parts of Seattle. You know the average customer group in your establishment stays for an average of 90 minutes {1.5 hours), spends $100, and you on average sees 100 customer groups (arriving in the same car) each day. Make a quantitative argument of how much an additional $1.00 increase in hourly parking rates would affect your business {assume the elasticities and estimates shown in the tables would be the same over this price range as well). Generate a dollar amount estimate of how the parking rate increase would affect your sales. Come up with a number or numbers, show your work, and explain in words your reasoning how you came up with that number. Hint: Elasticity = % change in outcome variablex'% change in treatment variable