This question requires you to know how to use the elasticity of demand formula. The shares of the automobile and a transit mode along a corridor are 4,500 and 1,000 persons per peak period respectively. The prevailing out-of-pocket costs and travel times associated with the two modes are as follows: ModeTime (minutes)Cost ($) Auto35$2.00 Transit501.00 The elasticities with respect to transit prices have been estimated as: TimeCost Auto 0.050.04 Transit-0.52-0.30 The elasticities with respect to auto prices are: Time (minutes) Cost Auto-0.58 -0.20 Transit0.12 0.03 The city department of transportation is contemplating the opening of an exclusive bus lane that would save an average of 10 minutes per trip. At the same time the city council is holding public hearings on aproposal to raise downtown parking rates and thus cause an increase in automobile travel costs to $2.60. Estimate the effects on peak hour travel demand of both actions combined.