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

(T1)
(T2)
The effect upon Q of an increase in the rate
structure of Mode One is the same as that brought
about by an increase in quality costs.
The same is true for Mode Two's supply and associated
cost curves.
(T 3 ) and T 4 ) The effect upon the quantity carried by a mode
is the same whether it is brought about by a
change in its supply or its quality costs.
(T 5 )
Two theorems are contained here. (a) Changes in
the quantity carried by a mode due to changes in
the structure of the other mode are symmetric, (b)
whether the structural changes are concerned with
rates or associated costs.
(T 6 ) and (T 7 ) Changes in shipper costs resulting from rate
changes are identical with those resulting from
associated cost changes.
(T 8 ) and The effects of changes in rates and costs for
one mode upon the solution rates and costs of the
other are symmetric.
Resulting From a Unit Shift of
Mode One's supply, upward
Mode Two's supply, upward
Table 3.2
FURTHER QUALITATIVE ANALYSIS OF THE TWO-MODE MODEL
Assoc. costs, Mode One, upward
Assoc. costs, Mode Two, upward
Size of the Change in
Q Q, Q,, T c T.Tr T nr
T 2 T 5 T 4
T l T 3 T 5 T 6
T 8
T 2 T 5 T 4 T 7 T 8
This completes the development of our two-mode transportation
model. In Appendix A to this chapter we algebraically derive the
demand for transportation curve from the product market supply and
demand curves. The elasticity of this curve is then presented in terms
of the original functions. Appendix B utilizes our model of the
T 9
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