The travel time (t) on the segment of a highway connecting city A with city B has been observed to follow the equation below, as a function of traffic flow (v): t = 15 + 0.02v, where t and v are measured in minutes and vehicles per hour, respectively. The demand function for travel connecting the two cities is v = 3500 – 120t.
The travel time (t) on the segment of a highway connecting city A with city B has been observed to follow the equation below, as a function of traffic flow (v): t = 15 + 0.02v, where t and v are measured in minutes and vehicles per hour, respectively. The demand function for travel connecting the two cities is v = 3500 – 120t.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The travel time (t) on the segment of a highway connecting city A with city B
has been observed to follow the equation below, as a function of traffic flow
(v): t = 15 + 0.02v, where t and v are measured in minutes and vehicles per
hour, respectively. The demand function for travel connecting the two cities is
v = 3500 – 120t.
a) Determine the equilibrium time and traffic flow.
b) If the length of the highway segment is 30 kilometres, what is the average
speed of vehicles traversing this segment at equilibrium conditions?
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