Question: A city has a utility function for use in a logit model of the form U = -0.075A -0.05W-0.04R -0.02C where A is the access

A city has a utility function for use in a logit

A city has a utility function for use in a logit model of the form U = -0.075A -0.05W-0.04R -0.02C where A is the access time in minutes, W is the waiting time in minutes, R is the riding time in minutes, and C is the out-of-pocket cost in cents. (a) What modal distribution would you expect, using the following values for A, W, R, and C, for the four modes used in the city. Mode A W R C Auto 6 1 25 300 Rail 7 10 15 75 Bus 10 15 35 60 Bike 1 0 45 10 (b) The city is seriously thinking of subsidizing rail and bus by 50%, encouraged biking by constructing bike paths and thus reducing biking time by 20%, and increasing auto costs (through higher parking charges) by 10%. What is likely to be the new modal distribution with these charges

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