Assignment:
A mode-choice model for a city includes the following modes: autos (A), light rail (L), buses (B), and rapid rail (R), with utility functions (U), as shown in the table:
where C is the cost in dollars, and T is the time in minutes.
a. Based on an estimate that 12,000 workers will head for downtown each morning, how many workers will choose to take a particular mode?
b. If the government subsidizes light rail by 30%, buses by 20%, and rail rapid by 10%, and at the same time increases automobile costs by 15%, what will be the new modal distribution?