Question

Many University campuses sell parking permits to their students allowing them to park on campus in designated areas. Although most students complain about the relatively high cost of these permits, what annoys many of these students even more is that after having paid for their permits, vacant parking spaces in the designated lots are very difficult to find during much of the day. Many end up having to park off campus anyway, where permits are not required. Assuming the University is unable to build new parking facilities on campus due to insufficient funds, what recommendation might you propose that would remedy the problem of students with permits being unable to find places to park on campus? (Hint: Think in terms of demand and supply analysis and how a market functions.)

Answer 1

Many university campuses sell parking permits to students but vacant parking spaces are difficult to find. The university doesn't have sufficient funds to build new parking facilities.

One recommendation which I would suggest is employing a personnel who oversees the tasks, such as a security guard, if the university continues to charge a relatively high cost. This will enable the parking spots being given to the designated student.

On the other hand as parking spaces are sometimes unavailable, the university could reduce the cost of the permit, so that they can apply the condition, that sometimes there will be no spots available because of high demand. This will enable them to earn more in terms of quantity size and increase their earnings.

It can also allot timelines that during certain hours the permit is for specific students, ensuring more supply by time management to meet the demand.

The University can also charge a ultra high cost of permit, ensuring that the designated area will only be for the specific student and it can charge fines for those who park without permit, this will increase the revenue and service.