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

(3.24)
3Z 1 (Q ,a )
1 4 0
aa
4
aZ 2 (Q 2 ,ab )
(3.25)
aa
5
>0
the assoc. cost curve shifts upward
Table 3.1
QUALITATIVE. ANALYSIS OF THE TWO-MODE MODEL
Resulting From a Shift of
The demand curve, rightward
, Mode One's supply, Upward
Mode Two's supply, upward
Quality costs, Mode One, upward
Quality costs, Mode Two, upward
Direction of the Change in
Q Q l Q 2 Te T1 T r2 T 1 T;
++ + + + + +
- - + + + + - +
- + - + + + +
- - + + - + + +
- + - + + - + +
Table 3.1 shows: (1) an increase in demand will cause an increase
in the solution values of all endogenous variables; (2) a shift up-
wards in a modal supply curve will result in a decrease in the quantity
carried by that mode, total quantity shipped and quality costs for that
mode, all other variables increasing in value; (3) an increase in qUalitY
costs for a mode will cause a. decrease in the quantity carried by that
mode, its rate and the total quantity shipped, With all other variables
again increasing in value.
Furthermore, if we examine shifts of the same nature for the supply
curve and quality cost curve of each mode, e.g., we Compare uniform up-
ward shifts.of five cents per ton of the supply curve and the quality
cost curve, we.can derive the relationships expreSeed in Table 3.2.
These are, for uniform shifts:
57