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(The following information applies to the questions displayed below. Suppose there are three passengers sharing a single cab ride and that passenger A's usual fare
(The following information applies to the questions displayed below. Suppose there are three passengers sharing a single cab ride and that passenger A's usual fare to his destination would be $25, passenger B's usual fare to her destination would be $18, and passenger C's fare would be $43. Because they are sharing the cab, and assuming no surcharge, the total cab fare is $43, rather than the $86 they would have had to pay in total individually. So there is a $43 saving to sharing the cab. Required: 1. Assume the passengers decide to split the $43 savings based on the relative proportion of how much each passenger would have paid individually if they had not shared the cab. How much will each passenger pay? Passenger A Passenger B Passenger C: 2. Assume, instead, that the passengers decide to split the cab fare so that each passenger saves the same absolute amount of money. How much will each passenger pay? Passenger A Passenger B Passenger C
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