HW1 - .i'r‘x ‘ iii,“ 0 The University of Texas at...

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Unformatted text preview: .i'r‘x: ‘ iii,“ 0 The University of Texas at Austin Chandra Bhat Dept of Civil, Architectural & Environmental Engineering Fall 2016 CE 321 - Transportation Systems Homework Assignment No. 1 Demand—Supply Equilibration Date distributed: September 8, 2016 Due date: September 15, 2016 Problem No. 1\ A bus company faces a demand function for its service, as follows: Q = 2125 — 9001” where Q is the patronage (person-trips/day) and P is the price (dollars/trip). The current price per trip is $1.30. The manager has the following options to increase the total revenue: (1) attracting additional riders by rescheduling and rerouting the service, and thus changing the demand function to Q = 2160 e 900P, or (2) encouraging more riders on tothe system by reducing the fare from $1.30 to $1.00. Which option would you advise the manager to adopt? Explain your answer. Problem No. 2 A railroad runs from A‘to B, a distance of 500 miles, through mountainous terrain. The present one—way travel time (including time at intermediate yards) .is 20 hours, and the rail freight rate is $20 per ton. There is a truck service which competes with the railroad, running over roughly parallel roads for approximately the "same distance, at an average speed of 30 miles per hour and a rate of $30 per ton. ' A new highway is planned to replace the existing road; while there is some auto traffic, it is expected that most of the traffic will be trucks. The service function of the new facility is IT = to + bVT, where VT is the total volume in truckloads per hour (the anticipated auto usage is negligible), to 2 10 hours, b = 0.08 hours per truckload per hour. The railroad’s estimate of the demand function is: :"r i {ll-“I." ..,. A,-"fc.‘;’.;g{7,.\ ...
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