Part 3 (2 points) Suppose the university does not have enough funds to provide any more spaces. In order to eliminate parking congestion, this university would want to charge $$ \$ \square $$ per hour during peak times and $$ \$ \square $$ per hour during off-peak times.

Question

UpStudy AI · Accepted Answer

To determine the parking fees that the university would want to charge during peak and off-peak times to eliminate parking congestion, we need to consider the cost of providing parking spaces and the demand for parking.

Let's assume that the university has a fixed cost of providing parking spaces, which we can denote as $$ C $$. The demand for parking during peak times is higher than during off-peak times. Let's denote the demand for parking during peak times as $$ D_{peak} $$ and during off-peak times as $$ D_{off-peak} $$.

The university wants to charge a fee that will cover the fixed cost of providing parking spaces and also discourage people from parking during peak times. To do this, they can charge a higher fee during peak times compared to off-peak times.

Let's denote the parking fee during peak times as $$ P_{peak} $$ and during off-peak times as $$ P_{off-peak} $$.

The university's goal is to find the values of $$ P_{peak} $$ and $$ P_{off-peak} $$ that will eliminate parking congestion while covering the fixed cost of providing parking spaces.

To solve this problem, we need to set up an equation that represents the university's goal and then solve for the parking fees during peak and off-peak times.
To eliminate parking congestion, the university should charge a higher fee during peak times and a lower fee during off-peak times. For example, they could charge \$5 per hour during peak times and \$3 per hour during off-peak times.

Part 3 (2 points) Suppose the university does not have enough funds to provide any more spaces. In order to eliminate parking congestion, this university would want to charge \( \$ \square \) per hour during peak times and \( \$ \square \) per hour during off-peak times.

Upstudy AI Solution

Answer

Solution

Bonus Knowledge

Related Questions

Latest Economics Questions