Youngsters Pay to Drive. The demand for automobile travel by the typical young driver (age less than 25 years) is linear, with a vertical intercept of $1.00 per mile and a horizontal intercept of 200...

Youngsters Pay to Drive. The demand for automobile travel by the typical young driver (age less than 25 years) is linear, with a vertical intercept of $1.00 per mile and a horizontal intercept of 200 miles per week. Initially, the cost of automobile insurance is a fixed weekly sum, independent of mileage. The average cost of driving— for gasoline, oil, maintenance, and repair—is constant at $0.20 per mile. (Related to Application 5 on page 697.)

a. Use a graph to show the driver’s choice of how many miles to drive, labeled as point a.

b. Use the data in Table 31.2 on page 697 in the application “Young Drivers and Collisions” to show the socially efficient outcome, labeled as point b.