You Can Drive to Campus, Take a Bus, or Walk

question 24

Multiple Choice

You can drive to campus, take a bus, or walk. Driving costs you $1/mile in gas and maintenance, the bus costs $1 for unlimited distance, and walking is free but involves a disutility equivalent to $1/mile. If you live 2 miles from campus, and are a rational decision maker, what is your reservation price for a bus ticket?

• A)$0
• B)$1
• C)$2
• D)$4

---

Definitions:

Bicameralism

The practice of dividing a legislative body into two separate chambers or houses, typically an upper and a lower house.

Legislative Chambers

Bodies within a legislative branch of government, such as the Senate and House of Representatives in the United States, responsible for making laws.

Executive Branch

The branch of the United States government responsible for the execution and enforcement of laws, headed by the President.

Supreme Court

The highest federal court in the United States, consisting of nine Justices and holding the ultimate appellate jurisdiction over all U.S. federal court and state court cases concerning issues of federal law.