There are two routes for driving from a to b. one is a freeway, and

6.  There are two routes for driving from A to B. One is a freeway, and the other consists of local roads. The benefit of using the  freeway is constant and equal to 1.8, irrespective of the number of people using it. Local roads get congested when too many people use this alternative, but, if too few people use it, the few isolated drivers run the risk of becoming victims of crimes. Suppose that, when a fraction xof the population  is using the local  roads, the benefit of this mode to each driver is given by

1 + 9x – l0x2 •

 

(a)      Draw a graph showing the benefits of the two driving routes as func­ tions of x, regarding  x  as a continuous  variable  that  can  range   from O to 1.

(b)     Identify all possible equilibrium traffic patterns from your graph in part a. Which equilibria are stable and which ones are unsta ble, and why?

(c)      What value of x maximizes the total benefit to the whole population ?