Vcar=kcar+c,carCcar+t,carTcarVpt=c,ptln(Cpt)+t,ptTpt+W,ptWpt+p,ptPpt where Ccar is the cost by car in AUD, Cpt is the cost by public transport in AUD, Tcar is the travel time by car in minutes, Tpt is the travel time by public transport in minutes, Wpt is the waiting time for public transport in minutes, Ppt is the number of transfers. The parameters of the model were estimated: kCar=2.741,C,car=0.311,t,car=0.098,c,pt=1.729,t,pt=0.122,W,pt=0.349,p,pt=0.895. The average values of the variables were calculated over the sample: Ccar=4.67AUD,Tcar=19.35min,Cpt=4.33AUD,Tpt=24.66min,Wpt=3.28min,Ppt=0.43. Calculate: (i) The direct elasticities with respect to cost, for car and public transport; and, the cross elasticity of car with respect to public transport cost, and the cross elasticity of public transport with respect to the car cost. Use the average values of the variables. (ii) The relative changes in the probabilities for the two alternatives, car and public transport, if the cost by public transport (the fare) increases by 20%. a. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+7.4%; % change for public transport =27.0% b. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+5.8%; % change for public transport =5.8% c. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =1.258; cross elasticity of car with respect to public transport cost =0.471 (ii) \% change for car =+7.4%; % change for public transport =27.0% d. (i) direct cost elasticity car =0.396; cross elasticity of public transport with respect to car cost =1.057; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+5.8%; % change for public transport =5.8% e. (i) direct cost elasticity car =0.396; cross elasticity of public transport with respect to car cost =1.057; direct cost elasticity public transport =1.258; cross elasticity of car with respect to public transport cost =0.471 (ii) % change for car =+7.4%; % change for public transport =27.0% Vcar=kcar+c,carCcar+t,carTcarVpt=c,ptln(Cpt)+t,ptTpt+W,ptWpt+p,ptPpt where Ccar is the cost by car in AUD, Cpt is the cost by public transport in AUD, Tcar is the travel time by car in minutes, Tpt is the travel time by public transport in minutes, Wpt is the waiting time for public transport in minutes, Ppt is the number of transfers. The parameters of the model were estimated: kCar=2.741,C,car=0.311,t,car=0.098,c,pt=1.729,t,pt=0.122,W,pt=0.349,p,pt=0.895. The average values of the variables were calculated over the sample: Ccar=4.67AUD,Tcar=19.35min,Cpt=4.33AUD,Tpt=24.66min,Wpt=3.28min,Ppt=0.43. Calculate: (i) The direct elasticities with respect to cost, for car and public transport; and, the cross elasticity of car with respect to public transport cost, and the cross elasticity of public transport with respect to the car cost. Use the average values of the variables. (ii) The relative changes in the probabilities for the two alternatives, car and public transport, if the cost by public transport (the fare) increases by 20%. a. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+7.4%; % change for public transport =27.0% b. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+5.8%; % change for public transport =5.8% c. (i) direct cost elasticity car =0.085; cross elasticity of public transport with respect to car cost =0.226; direct cost elasticity public transport =1.258; cross elasticity of car with respect to public transport cost =0.471 (ii) \% change for car =+7.4%; % change for public transport =27.0% d. (i) direct cost elasticity car =0.396; cross elasticity of public transport with respect to car cost =1.057; direct cost elasticity public transport =0.291; cross elasticity of car with respect to public transport cost =0.109 (ii) % change for car =+5.8%; % change for public transport =5.8% e. (i) direct cost elasticity car =0.396; cross elasticity of public transport with respect to car cost =1.057; direct cost elasticity public transport =1.258; cross elasticity of car with respect to public transport cost =0.471 (ii) % change for car =+7.4%; % change for public transport =27.0%