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The price to drive on a freeway is $0 or free at all times of the day. This price establishes equilibrium at 3 a.m. but
The price to drive on a freeway is $0 or free at all times of the day. This price establishes equilibrium at 3 a.m. but it is too low to establish equilibrium at 5 p.m during rush hour. Therefore, there is a shortage of freeway space at 5 p.m. Graphically show & explain how carpooling may eliminate the shortage. (Hint: Demand side management)
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