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Assignment:
Cruisingfor Parking II
The UCLA transportation economist Donald Shoup developed a formula to explain the rational maximum cruising time for parking. Calculate the cruising time elasticity (i.e., the point elasticity using calculus) with respect to the price (p). At a price of p=5 and m=l2, what is the elasticity of c with respected to p?
At this point, how will a 1% increase in p alter the maximum cruising time? Refer to the elasticity you calculated.
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