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