Suppose That There Is Not Enough Parking at an Urban

Multiple Choice

Suppose that there is not enough parking at an urban university. Sometimes students come to campus, spend a few minutes searching for a parking spot, and then decide that going to class isn't worth the effort of continuing to search for a parking spot, so they go home. Assume that all professors give midterm exams on the same day. You would expect the optimal amount of time spent searching for a parking spot on that day to ________ because ________.

A) decrease; the marginal cost of search is higher
B) increase; the marginal cost of search is lower
C) increase; the marginal benefit of search is higher
D) decrease; the marginal benefit of search is lower