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markets3 - (a Bus drivers go on strike in order to pressure...

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Additional Problem 3: Market Analysis Consider the market for bus service. First draw a graph depicting market equilibrium for bus service. Then, for each of the events given below, analyze what effects each event will have on the market equilibrium for bus service, i.e. effect on equilibrium price, equilibrium quantity, demand or quantity demanded, supply or quantity supplied. You must draw separate graphs for each of the following events. Remember to label all axes, functions, and equilibrium points in your graph precisely.
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Unformatted text preview: (a) Bus drivers go on strike in order to pressure their employers for wage increases. (b) The number of parking spaces decreases due to new land use planning requirements. (c) Employers with 100 or more employees offer subsidized bus passes to their employees. (d) Two thousand miles of Metrolink and commuter rail service are opened. (e) Congestion on the freeways increases with no plans to fund construction of new freeway lanes....
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