On the basis of the Carmageddon study, which of the following statements is (are) TRUE about adding another traffic lane to a highway?
I. Partial equilibrium analysis predicts that traffic flow will increase, since drivers will have more usable road space.
II. General equilibrium analysis predicts that traffic flow will remain unchanged, as more businesses and people move to the area.
III. Partial and general equilibrium analysis reach the same conclusion-expanding roadways reduces traffic congestion.

Question

Quizplus · Accepted Answer

I. Partial equilibrium analysis focuses on the immediate effects within a specific sector, predicting that an additional lane would increase traffic flow due to more road space. II. General equilibrium analysis considers broader economic impacts, suggesting that over time, the increased accessibility will attract more businesses and people, potentially negating the initial reduction in congestion. III is incorrect because partial and general equilibrium analyses often reach different conclusions regarding the impact of expanding roadways on traffic congestion.

On the Basis of the Carmageddon Study, Which of the Following