A Small Popular Restaurant at an Interstate Truck Stop Provides

question 26

Multiple Choice

A small popular restaurant at an interstate truck stop provides priority service to truckers. The restaurant has ten tables where customers may be seated. The service time averages 40 minutes once a party is seated. The customer arrival rate is 12 parties per hour, with the parties being equally divided between truckers and non-truckers.
On average, how much longer in minutes do parties of non-truckers spend in the system, compared to parties of truckers?

• A) 4.
• B) 7.
• C) 11.
• D) 15.
• E) It is impossible to determine without more information.

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Definitions:

Shortage

A market condition where the quantity demanded of a good exceeds the quantity supplied at the current price, leading to upward pressure on price.

Surplus

The situation in which the quantity of goods produced exceeds the quantity of goods demanded. Surpluses can result in price drops for products or services, reflecting a mismatch in supply and demand.

Price Ceiling

A cap set by authorities on the maximum price for a good or service, aimed at safeguarding consumers.

Price Floor

A minimum price set by the government or other agency, below which a product cannot legally be sold.