Two burrito shops at either end of a one-mile road. The road has a uniform distribution of customers along it. People's reservation price for burrito is $10.00, The disutility that people get from walking is $5.00 per mile. If the vendors charge $8.00 for a burrito, what proportion of people on the road will buy a burrito (answer should be number between 0 and 1)? Could you also provide formulas that you used?

Two burrito shops at either end of a one-mile road. The road has a uniform distribution of customers along it. People's reservation price for burrito is $10.00, The disutility that people get from walking is $5.00 per mile. If the vendors charge $8.00 for a burrito, what proportion of people on the road will buy a burrito (answer should be number between 0 and 1)? Could you also provide formulas that you used?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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