Price elasticity by the hour of day. Average parking occupancy rates of 2011 (i.e., after the rate change) in neighborhoods with a decrease, no change and an increase in rates are also displayed in this figure. 0.0 -0.1 E I -0.2 a S -0.3 t i -0.4 C i -0.5 t Y -0.6 -0.7 -0.8 Hour of the day 60 8 9 10 11 12 13 14 15 16 17 -0.9 -Decrease price elasticities model 1 → Decrease neighborhoods' occupancy in 2011 ...... No price change neighborhoods' occupancy in 2011 Increase price elasticities model 1 ⚫ Increase neighborhoods' occupancy in 2011 50 8333PONG> 40 40 30 20 20 a n C Y 30 10 0 (0°) ૪ Based on the figure showing estimated elasticities after the price increase, what times of day have the most elastic parking demand? Why do you think this is the case? Explain.
Price elasticity by the hour of day. Average parking occupancy rates of 2011 (i.e., after the rate change) in neighborhoods with a decrease, no change and an increase in rates are also displayed in this figure. 0.0 -0.1 E I -0.2 a S -0.3 t i -0.4 C i -0.5 t Y -0.6 -0.7 -0.8 Hour of the day 60 8 9 10 11 12 13 14 15 16 17 -0.9 -Decrease price elasticities model 1 → Decrease neighborhoods' occupancy in 2011 ...... No price change neighborhoods' occupancy in 2011 Increase price elasticities model 1 ⚫ Increase neighborhoods' occupancy in 2011 50 8333PONG> 40 40 30 20 20 a n C Y 30 10 0 (0°) ૪ Based on the figure showing estimated elasticities after the price increase, what times of day have the most elastic parking demand? Why do you think this is the case? Explain.
Chapter5: Elasticity Of Demand And Supply
Section: Chapter Questions
Problem 2.5P: (Determinants of Price Elasticity) Would the price elasticity of demand for electricity be more...
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Transcribed Image Text:Price elasticity by the hour of day. Average parking occupancy rates of 2011 (i.e., after
the rate change) in neighborhoods with a decrease, no change and an increase in rates
are also displayed in this figure.
0.0
-0.1
E
I
-0.2
a
S
-0.3
t
i
-0.4
C
i
-0.5
t
Y
-0.6
-0.7
-0.8
Hour of the day
60
8
9
10
11
12
13
14
15
16
17
-0.9
-Decrease price elasticities model 1
→ Decrease neighborhoods' occupancy in 2011
...... No price change neighborhoods' occupancy in 2011
Increase price elasticities model 1
⚫ Increase neighborhoods' occupancy in 2011
50
8333PONG>
40
40
30
20
20
a
n
C
Y
30
10
0
(0°)
૪
Based on the figure showing estimated elasticities after the price increase, what times
of day have the most elastic parking demand? Why do you think this is the case?
Explain.
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