Two lanes of traffic going in the same direction

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Reference no: EM131003096

Suppose there are two lanes of traffic going in the same direction. The left lane has one percent of the number of cars in it compared to the right lane, and is moving at a fast speed. Suppose that if a car moves from the slow right lane to the faster left lane it causes the right lane to speed up and the left lane to slow down.

a. Would such a move increase or decrease the average speed of all cars?

b. Would such a move be a Pareto improvement? Why or why not?

c. When the average speed is maximized for the total number of cars, what is true about the speeds in both lanes?

Reference no: EM131003096

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