Q. 1 The cost to drive on a freeway is $0 at all times of the day. This cost establishes equilibrium at 3 a.m. however is low to create equilibrium at 5 p.m. There is a shortage of freeway space at 5 p.m.
a. Graphically Explain how and explicate how carpooling may eliminate the shortage.
b. Graphically explain how and explicate how building more freeways may eliminate the shortage.
2 Diagrammatically explain how and Explicate why there is a shortage of classroom space for some college classes and a surplus for others.
3 Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.