To save the gasoline expenses

Assignment Help Macroeconomics
Reference no: EM13193979

To save on gasoline expenses, Edith and Mathew agreed to carpool together for traveling to and from work. Edith preferred to travel on I-20 highway as it was usually the fastest, taking 25 minutes in the absence of traffic delays. Mathew pointed out that traffic jams on the highway can lead to long delays making the trip 45 minutes. He preferred to travel along Shea Boulevard, which was longer (35 minutes), but rarely had traffic jams. Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative. Neither of them knows the state of the highway ahead of time. 
After driving to work on the I-20 highway for 1 month (20 workdays), they found the highway to be jammed 3 times. Assuming that this month is a good representation of all months ahead, should Edith and Mathew continue to use the highway for traveling to work? 
How would you conclusion change for the winter months, if bad weather makes it likely for traffic jams on the highway to increase to 6 days per month? 
How would your conclusion change if Mathew purchased a new smart-phone app that could show the status of the highway traffic prior to their drive each morning, thus reducing the probability of them getting into a jam down to only 1day per month (where on this day, the app showed no traffic jam, but a jam developed in the meantime as they were driving along the highway).

Reference no: EM13193979

Questions Cloud

How long will it take the rocket to reach an altitude : A rocket accelerates straight up from rest with a constant acceleration of 400 m/s2. How long will it take the rocket to reach an altitude of 16,200 meters?
State barium sulfate is a very insoluble compound : Barium sulfate is a very insoluble compound. Please give reasons for compounds like barium sulfate or barium phosphate to be insoluble
Explain what is the cell voltage : What is the cell voltage when the following volumes of 0.640 M NaBr have been added? 1.0 ml, 13.0 ml, 20.6 ml, 21.5ml, 34,5ml, 43.1ml, 47.5ml.
What is the largest area you can enclose : If you have 140 meters of fencing and want to enclose a rectangular area up against a long, straight wall, what is the largest area you can enclose?
To save the gasoline expenses : Edith agreed that in case of traffic jams, Shea Boulevard was a reasonable alternative.Neither of them knows the state of the highway ahead of time.
Analyze a person according to the five personality model : Analyze a person (movie character, yourself, celebrity) according to the Big Five Personality Model.  Where do they fall on each trait and why?
State the final temperature of substances at equilibrium : Two substances, A and B, initially at different temperatures, come into contact and reach thermal equilibrium. The mass of substance A is 6.05g and its initial temperature is 20.9?C
What time will be required : What uniform acceleration will bring an automobile running at 40 mi/hr, to rest in 120 ft? What time will be required?
How fast is john driving : Bob, driving a new Ford, travels 330 miles in the same amount of time it takes John, driving an old Chevy and traveling 10 miles per hour faster, to travel 390 miles. How fast is John driving?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Critisim of the federal income tax exemption of interest

Give some arguments for and against the critisim of the federal income tax exemption of interest on state-local debt as being an inefficient subsidy.

  Elucidate the impact of the global financial crisis

Elucidate the impact of the global financial crisis of 2008-2009 on the economies of industrialised countries and emerging markets. What effect do problems like these have on attitudes towards free trade.

  Demand with zero transactions costs

What is the maximum per unit that sellers are willing to pay intermediaries if hiring them saves $8 transaction costs?

  Find out the pricing strategy to increase revenues

In each of the cases listed below determine what this consumer needs to do (in terms of purchasing X and Y) to maximizes their utility.

  Get price level stability under these conditions

Get price level stability under these conditions the government should:

  Explain the concept of consumer surplus

The TiVo video recorder, the iPod music player and the Xbox game machine all owe their existence to the same high-tech innovation: smaller, denser, cheaper disk drives.

  Find out optimal consumption level of video games

Find out optimal consumption level of video games and burritos that maximizes total utility.

  Derive the expenditure function for utility level u

Which of the non negativity constraints on x1; x2 will bind for small m? c. Derive for the Marshallian demand functions and the indirect utility function. d. Derive the expenditure function for utility level u.

  Case study - Grand Wines

At least one-day is lost in supplying customers with products because of the delays in getting orders into the system.

  Reasons and causes behind higher wage in germany

Give three reasons why firms produce in Germany rather than in a lower-wage country.

  Effects of an increase in government spending

Show in an IS-LM and AS-AD graph the effects of an increase in government spending. Next, using the same graph, show how the economy will transition back to the natural rate of unemployment. Explain intuitively how this transition takes place.

  Illustrate what does this have on the monetary base

Illustrate what does this have on the monetary base, the money supply, total deposits, and economic growth.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd