Question: Homework 2. A city has a utility function tor use in a logit model of the form U = -D.0?5A 0.05W .D4H 0.0213 where A

 Homework 2. A city has a utility function tor use in

Homework 2. A city has a utility function tor use in a logit model of the form U = -D.0?5A 0.05W .D4H 0.0213 where A is the access time in minutes, W is the waiting time in minutes, Fl is the riding time in minutes, and C is the out-ofpocket cost in cents. {a} What modal distribution would you expect, using the following values for A, W, FI, and C, for the tour modes used in the city. - {b} The city is serioust 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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