On the day of home football games, the university raises the price of parking on some of its lots from $1.50 to $10.00 per vehicle. This is done, according to the Committe on Transportation, so that regular parking users do not subsicize the cost of providing parking for football fans. Would regular users be subsidizing football parkers if the rate stayed at $1.50 on football Saturdays?
2006-11-13 11:38:25 · 3 answers · asked by jpunkin1121 2 in Social Science ➔ Economics
You would have to evaluate the numbers...but yes, everyday (off-peak parkers) would obviously be paying for a grossly oversized parking lot maintenance.
During peak parking (home football games), demand is very high and price should be adjusted accordingly.
If 2,000 students normally use the lot (off-peak) and the university must build a 35,000 car lot, then the cost of the extra 33,000 spaces should be divided by the number of home games on a per spot basis.
$10 seems high, but I still side with the
university on this one.
2006-11-13 11:59:44 · answer #1 · answered by Understood 3 · 1⤊ 0⤋
Well, that's assuming that the parking rate *would* be higher on regular days if it weren't $10 on Saturdays. If the rate were $1.50 every day, then nobody would be subsidizing anybody, really--it would just be that the parking lot owners would be making less money overall. But if a regular parking person had to park in the same lot on Saturday and had to pay $10, then they'd be subsidizing football parking. But I'm assuming that they wouldn't be working on those days, or they could park elsewhere.
I don't think the regular users ever subsidize the costs for football parkers. If the baseline rate is $1.50, and occasional parkers pay $10, then they're just giving extra money to the parking lot owners. The only way regular parkers would subsidize football parkers is if the football parkers parked for FREE and the regular parkers had to pay $1.50.
Come to think of it, those bastards at UF let the football parkers park for free on the weekends in the commuter lots, but commuters had to buy parking passes for the rest of the week. Bastards! Like football didn't bring in enough money as it is.
2006-11-13 19:46:50 · answer #2 · answered by SlowClap 6 · 0⤊ 0⤋
No, it's a way to make a buck.
2006-11-13 19:41:03 · answer #3 · answered by Marshall Lee 4 · 0⤊ 2⤋