Question
The number of automobile trips per hour(V) between tow midwestern cities has the following function: V = aT,20T 15 C,05C6 Where TA and TT
The number of automobile trips per hour(V) between tow midwestern cities has the following function: V = aT,20T 15 C,05C6 Where TA and TT are the travel time for auto and transit, respctively; CA and CT are out of pocket costs for auto and transit, respectively; and a is a constant that reflects the size and average income of the population. (a) at the current time, there are 50,000 automobile trips between the cities every day. If a new parking policy results in an increase of out of pocket auto costs from $5 to $6, what will the change in demand? (b) in addition to part(a), if transit facitlity improvements lead to a reduction in transit time form 1 hour to 45mins, what would be the new demand for automobile travel between the two cities.
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