In the City of Joplin, due to weather devastation and hurricane effects, the cost of parking in the local Square has increased by 20%. This change has not only reduced the number of vehicles that travel to the Square by 5%, but it has also forced the inhabitants of Joplin to use buses. Bus trips have therefore increased to 20%. With respect to the cost of parking in the local Square, determine the elasticity of vehicle traffic. ____© BrainMass Inc. brainmass.com September 21, 2018, 7:49 am ad1c9bdddf - https://brainmass.com/economics/transport-and-agricultural-economics/elasticity-of-vehicle-traffic-in-the-city-of-joplin-574897
Percent change in number of vehicles=-5% (negative sign indicates the decrease in number of ...
Solution depicts the steps to estimate the elasticity of vehicle traffic.