XSU is located in the middle of a residential neighborhood. The residents of the
ID: 1204421 • Letter: X
Question
XSU is located in the middle of a residential neighborhood. The residents of the surrounding 4 blocks notice that street parking is a problem while classes are in session (i.e. Monday through Friday 8am to 4PM, mid August through mid-May except for breaks) or during special events (athletic contests, etc….). Students and staff can be viewed driving around looking for parking spaces, even though there are spaces available in some of the parking lots on the edge of campus.
Residents complain that the extra traffic leads to more small accidents, and that their visitors (personal or service related) cannot park near their intended visit sites. Students and staff complain that there are not enough parking spaces.
A task force is constituted, and comes up with the following recommendation – either XSU builds sufficient parking spaces or the city institute a permit parking system. If XSU builds more parking lots, the construction and maintenance would have to come from parking fees. The recommended parking permit system that requires permits for street parking within the 4 block radius. There would be set number of permits with each household getting one permit, and the rest to be sold to anyone who wishes to buy them. The revenue from the permit sales would be used to fund a parking officer who would enforce the permit system where any violator’s vehicle is towed and assessed a fine of $2,000 plus towing.
1. Explain under what conditions (if any) the building of additional parking lots will solve the problem.
2. Explain under what conditions (if any) will the permit system solve the problem.
3.What are the likely effects of either recommendation on the neighborhoods more than 4 blocks away ?
Explanation / Answer
1. Thw buildng of additional parking lots will be feasible when marginal revenue earned from parking fees is equal to marginal cost of building the additional parking.
since this wil provide parking to students and XSU staff, the existing parking will accomodate more of residents vehicle and their visitors.
2.permit system will be feasible when revenue generated from sale of permits plus from the fine collected on voilation plus towing is greater than or equal to the fees of the parking officer who would enforce the permit system.
3. it will result in overcrowding in the neighbourhoods more than 4 blocks away because they need not to pay any fees or purchase any permit.
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