How does a grocery store know how much cereal, butter, and candy it should stock on its shelves? The price to drive on a freeway is $0 at all times of the day. This price establishes equilibrium at 3...

How does a grocery store know how much cereal, butter, and candy it should stock on its shelves?

The price to drive on a freeway is $0 at all times of the

day. This price establishes equilibrium at 3 A.M. but is

too low to establish equilibrium at 5 P.M. There is a

shortage of freeway space at 5 P.M.

a Graphically show and explain how carpooling

may eliminate the shortage.

b Graphically show and explain how building more

freeways may eliminate the shortage.