Policy proposals influencing market for parking
How would your policy proposals influence the market for parking?
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Analysis of the different proposals in a demand and supply framework exhibits some popular policies, such as free permits, would worsen the parking shortage. Policies to limit demand can decrease the shortage, though there will be inefficiencies in the resultant allocation. Building more parking lots is not a shift in the supply curve. Latest construction is a rise in quantity all along the existing supply curve. The additional costs require to be covered by certain means: higher parking fees, tuition raises, or tax-payer subsidies.
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