Suppose that there is not enough parking at an urban university. Sometimes students come to campus, spend a few minutes searching for a parking spot, and then decide that going to class isn't worth the effort of continuing to search for a parking spot, so they go home. Assume that all professors give midterm exams on the same day. You would expect the optimal amount of time spent searching for a parking spot on that day to ________ because ________.
A)decrease; the marginal cost of search is higher
B)increase; the marginal cost of search is lower
C)increase; the marginal benefit of search is higher
D)decrease; the marginal benefit of search is lower

Question

Quizplus · Accepted Answer

The benefit of finding a spot will be higher on that day because students have to go to class to take their midterm, so students would engage in more search.

Suppose That There Is Not Enough Parking at an Urban