Solution Found!
Many transportation systems, such as the Washington, D.C., Metro (subway), charge higher fares during rush hours than during the rest of the day. Why might they do this?
Chapter 11, Problem 9(choose chapter or problem)
QUESTION: Many transportation systems, such as the Washington, D.C., Metro (subway), charge higher fares during rush hours than during the rest of the day. Why might they do this?
Questions & Answers
QUESTION: Many transportation systems, such as the Washington, D.C., Metro (subway), charge higher fares during rush hours than during the rest of the day. Why might they do this?
ANSWER:Step 1 of 2
Transportation systems can be either public goods or common resources. If the subway is not congested, one person’s use does not affect anyone else. In this case, the use of the subway is not a rival in consumption, and the subway is a public good.