Business
Business, 19.06.2020 01:57, Terezagonzalez2271

Consider two ways of commuting in a crowded city: taking public transportation, such as subway and buses, or driving your own car. A person who chooses to take public transportation in a crowded city imposes a NEGATIVE OR POSITIVE externality on drivers. A policy implication of this result is a SUBSIDY FOR OR TAX ON those who take public transportation. Persons who choose to drive their own cars to get around in a crowded city impose a NEGATIVE OR POSITIVE externality on other drivers. A policy implication of this result is a TAX ON OR SUBSIDY FOR those who drive their own cars.

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