Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
Economics of Public Issues (20th Edition) (The Pearson Series in Economics)
20th Edition
ISBN: 9780134531984
Author: Roger LeRoy Miller, Daniel K. Benjamin, Douglass C. North
Publisher: PEARSON
Question
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Chapter 24, Problem 6DQ
To determine

The average occupancy of vehicles in the hot lane as compared to the vehicles in the other lane during the rush hours.

Concept introduction:

Congestion:

Congestion is defined as the slow movement of vehicles or traffic jams on the road due to large numbers of vehicles at the same time.

Toll:

Toll is defined as the tax or the fee collected from the vehicle’s driver for using the roads, in order to maintain them in better condition and control congestion.

Explanation:

  • The highway has two lanes of which one lane charges toll and the other lane does not charge any toll.
  • As the toll charge does not depend upon the number of passengers, so, the car can accommodate as many passengers as it can.
  • The average occupancy in the hot lane is very high as compared to the occupancy in the other lane.
  • The reason for such high occupancy lies in the fact that during the rush hours, everyone is in a hurry to reach early. Therefore, the passengers from the other lane would pool a car in the hot lane to the extent possible.

Blurred answer

Chapter 24 Solutions

Economics of Public Issues (20th Edition) (The Pearson Series in Economics)

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