IE4221 Transportation Demand Modeling and EconomicsInstructor: Dr. Liu Yang 2. Market Equilibrium Analysis(2)
Exercise 1If an airline provides two equally distant hub to a spoke city, i.e., A and B, and hub A has 10% more passenger enplanements, the demandfrom the spoke city to A is expected to be ________ higher than the demand to B.(A)360%.(B)10%(C)3.6%. (D)none of the above Solution:∆𝑇?𝑖𝑝?/𝑇?𝑖𝑝? ∆??𝑝?𝑎?𝑒?𝑒???/??𝑝?𝑎?𝑒?𝑒??? = 𝛽5= 0.36,so ∆𝑇?𝑖𝑝?𝑇?𝑖𝑝?= 0.36 ∗ 10% =3.6%Choose (C)
Exercise 2If the intercity congestion increases by 10%, the air demand is expected to ________ by_______?The intercity congestion is reflected by the driving time (Drvtime). The elasticity is constant 𝛽7= 1.86. Since ∆𝑇?𝑖𝑝?/𝑇?𝑖𝑝?∆??𝑣?𝑖?𝑒/??𝑣?𝑖?𝑒= 1.86, we have Τ∆𝑇?𝑖𝑝? 𝑇?𝑖𝑝? = 1.86 ∗ 10% = 18.6%. Choose (A)
IE4221 Transportation Demand Modeling and EconomicsInstructor: Dr. Liu Yang3. Consumer Behavior and Demand (1)4
Exercise 1Consider the utility function
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- Fall '16