From california to new york legislative bodies across the


From California to New York, legislative bodies across the US are considering eliminating or reducing the surcharges that banks impose on non-customers who make $12 million in withdrawals from other banks’ ATMs. On average, noncustomers earn a wage of $24 per hour and pay ATM fees of $3.00 per transaction. It is estimated that anks would be willing to maintain services for 5 million transactions at $1.25 per transaction, while noncustomers would attempt to conduct 19 million transactions at that price. Estimates suggest that, for every 1 million gap between the desired and available transactions, a typical consumer will have to spend an extra minute traveling to another machine to withdraw cash. Based on this information, use a graph to carefully illustrate the impact of legislation that would place a $1.25 cap on the fees banks can charge for noncustomer transactions.

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Business Economics: From california to new york legislative bodies across the
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