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Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

Q2 Z2,(Q2) Z2(Q2) - Institute for Water Resources - U.S. Army

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T r<br />

in Market A, T <strong>for</strong> the transportation of the product from A to Bi and<br />

incur waiting costs of TC..<br />

b<br />

P b<br />

- TC<br />

a<br />

-r<br />

TC<br />

0<br />

TC 1 ■ i(P + T r )t<br />

TC 2<br />

iPt<br />

Fig. 3.8 -- Time Preference Cost Curves<br />

Fig. 3.9 -- One-Mode Model with Consumers' Time Prefetence Costs<br />

49

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