Question in the town of freedonia the government declares, Ask an Expert

Economics

Question: In the town of Freedonia, the government declares that all street parking must be free: There can be no parking meters. In an almost identical town of Meterville, parking costs $5 per hour (or $1.25 per 15 minutes).

a. Where will it be easier to find parking: in Freedonia or Meterville?

b. One town will tend to attract shoppers who hate driving around looking for parking. Which one?

c. Why will the town from part b also attract shoppers with higher incomes?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92652790

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