Modeling a Commuter's Choice

Modeling the Market for Used Textbooks

An economist wants to create a simple model to understand the effect of a new, popular food truck opening on a street that already has several established restaurants. Arrange the following steps in the logical order they would follow to build and use this model to predict the outcome.

A city government wants to understand the potential impact of a new public bike-sharing program on downtown traffic congestion. An economist is tasked with creating a model to predict this impact. Which of the following represents the most effective and essential simplifying assumption to build into the initial model?

An economist creates a simple model to understand the local market for rental apartments. Match each statement from the model to its correct classification as a component of that model.

Modeling a Tourist Tax

An economist is building a model to predict the immediate, short-term impact of a sudden, significant increase in the price of coffee beans on the number of cups of coffee sold at a local café. To simplify the analysis, the economist assumes that consumers' incomes and the prices of other beverages (like tea) will remain constant.

Statement: This simplifying assumption is flawed and should be rejected because, in the real world, consumer incomes and the prices of other goods are not constant.

Modeling a University Dining Plan Change

Modeling the Smartphone Upgrade Decision

Evaluating a Model of Park Overcrowding