Refer to the figure.

- If travel time increases to 60 minutes, the optimal giving up time
A) increases.
B) decreases slightly.
C) stays the same.
D) decreases significantly.

Question

Refer to the figure.

- If travel time increases to 60 minutes, the optimal giving up time
A) increases. 
B) decreases slightly. 
C) stays the same. 
D) decreases significantly.

Quizplus · Accepted Answer

When travel time increases, the optimal giving up time also increases because the cost of continuing to wait is lower compared to the increased travel time.

Refer to the Figure