1. Describe the price elasticity of the demand public transportation for high income people and the elasticity of demand for public transportation with respect to service quality for lower-income people.
2. Discuss the effectiveness of cost-benefit analysis as a method of allocating resources in transportation. Compare the goals and interests of private (fully deregulated) operators and of public operators in the transportation sector.
3. Discuss the importance of measuring output in transportation industries in terms of capacity or in terms of the actual volume of activity.
4. How does the government justify the imposition of tolls on the new Champlain bridge? In your answer, also explain how government spending is financed in this case.