A zonal interchange is served by a local bus route and an express bus route. The...
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A zonal interchange is served by a local bus route and an express bus route. The current travel time and fares are 50 minutes and $1 for the local bus and 30 minutes and $2 for the express bus. The current transit ridership is 1600 per day on the express service and 2400 per day on the local service. The following elasticities of demand are also given: Time Local +0.36 Express -0.45 Express Fare +0.2 -0.3 Time -0.5 +0.42 Local Fare -0.3 +0.2 The number of express buses is being expanded to reduce wait time and thereby lower the express bus travel time from 30 to 25 minutes. At the same time the express bus fare is being raised to $3. All attributes of the local bus will remain the same. What is the overall impact of these changes on the ridership of each mode? A zonal interchange is served by a local bus route and an express bus route. The current travel time and fares are 50 minutes and $1 for the local bus and 30 minutes and $2 for the express bus. The current transit ridership is 1600 per day on the express service and 2400 per day on the local service. The following elasticities of demand are also given: Time Local +0.36 Express -0.45 Express Fare +0.2 -0.3 Time -0.5 +0.42 Local Fare -0.3 +0.2 The number of express buses is being expanded to reduce wait time and thereby lower the express bus travel time from 30 to 25 minutes. At the same time the express bus fare is being raised to $3. All attributes of the local bus will remain the same. What is the overall impact of these changes on the ridership of each mode?
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Answer rating: 100% (QA)
Impact of change in travel time of express mode on the ridership will be that the ridership will increase by 120 per day Explanation Time Elasticity o... View the full answer
Related Book For
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne
Posted Date:
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