thank you 2 4 points Distance Between Bus Stops Consider a c

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2. (4 points) Distance Between Bus Stops Consider a city that decreases the distances between bus stops, which decreases the walking time of bus nders by 20%, increases the in-vehicle time by 10%, and increases fares br 5%. On the typical bus line, the initial ndership is 1,000 nders per hour Suppose that for every 1% reduction in talking time there is an increase of 0.3 o n bus ndership and that for every 1% reduction n in-vehicle tme there is an increase of 0.4% in bus idership. Also suppose that for every 1% increase in the bus fare there is a decrease of 0.5 in bus ridership a. Ignoring the changes to in-vehicle time and fares, what is the effect on ridership resulting from just the change to walking time? Will ridership increase, decrease, or stay the same as a result of this? If ridership changes, state in which direction and by how many passengers. Show your work. b. Ignoring the changes to walking time and fares, what is the effect on ridership resulting from just the change to in-vehicle time? Will ridership increase, decrease, or stay the same? If ridership changes, state in which direction and by how many passengers. Show your work c. Ignoring the changes to walking time and in-vehicle time, what is the effect on ridership resulting from just the change to fares? Will ridership increase, decrease, or stay the same? If ridership changes, state in which direction and by how many passengers. Show your work d. Adding together all of the effects from parts (a) through (c) above, what is the orerall change in riders if any)? State both the direction and the number of the net change in passengers resulting from these three changes. Show your work.

Solution

Answer:

The ridership will increase. For every 1% decrease in walking time there is 0.4% increase in ridership. If a 20% decrease in wlaking time is brought about there will 20*0.4 = 8 percent increase in ridership. Thus riderhsip will increase to 1080.