Supply curve: the chart about shows the supply curve. This curve shows that higher costs are needed to compensate for more parking spots. One of the propositions was to raise the meter rates and parking spots. The extra money could be used to improve transit and neighborhoods, or cover the costs for more parking spots.
Demand Curve: The demand curve shows that the higher price without adding spaces. The higher demand the more money people will pay for parking spots. Again the rates and meters are being talked about to increase money.
Supply and Demand curve: currently in San Francisco the demand is so high, which the price is not where it should be. In order to meet equilibrium on these curves (where the curves meet in the middle) the price must be increase.
Demand rises curve: if demand rises, then there is a need for more supply, which will also increase the price. The demand for parking spaces is so extreme that this curve shows the even if there are more spots added that the price will increase as well.
Demand Analysis for the parking in San Francisco: The willingness to park for a parking spot. The highest price a buyer would pay for a parking spot.
The tastes and needs determine the desire and willingness to pay for a parking spot
Consumer’s income and wealth: the parking can increase to a higher price; however, it must be affordable and not out of the range of the income of the residents.
The substitution for adding spots: increase price for parking, do not add any spots, and use the money towards the neighborhoods and transit, increase parking and put the money into transit only, decrease parking spots and utilize the transit only and make it better.
In this case there are no complementary goods
The above graph on the left shows the demand curve of the individual buyer. This shows the buyers willingness to pay different amounts of money for the goods purchase. The same on the right side of the graph shows the sellers willingness to sell goods at different prices. The prices gaps are the different prices charged to close any large price differences. These differences are called price discrimination. One of the options is to have the meters be different prices in different areas of the city. Where there is the wealthier area, the meters will be more. In the poorer areas, the meters will be less.
The sum of the buyers demand: the above graph shows that the sum of all individual demands is the total market demand. Whereas the people that do not have a high demand for parking spots and the people with very high demand; their sum will equal the market demand.
Inelastic Demand Curve: the demand curve for the parking is very inelastic because there is such a limited quantity of parking spots, which shows that the parking spots can be charged a sufficiently larger price than what is being paid right now. Price increase has no impact on high quantity demanded.
Marginal Costs: the more parking spots made there will be higher marginal costs. These costs are from the direct labor to make the spots, the money paid for the machinery, the raw materials, the repairs and maintenance, etc.
Increase in demand in short and long run: in the short fun the demand is still inelastic. The new demand shift outward in the short is a steep increase in price, which is one option of parking. In the long run the demand curve is elastic, which is what needs to happen in the demand curve, to give more of flexibility between supply and demand.
Institutions: Rules and laws of local government are affecting how many spots there are, because there is…