1 Sentences With "having an associated cost"

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When supply shifts from S1 to S2, the price (explained below) drops from P1 to P2, and quantity consumed increases from Q1 to Q2 A journey on a road can be considered as having an associated cost or price (the generalised cost, g) which includes the out-of-pocket cost (e.g. fuel costs and tolls) and the opportunity cost of the time spent traveling, which is usually calculated as the product of travel time and the value of travellers' time. When road capacity is increased, initially there is more road space per vehicle traveling than there was before, so congestion is reduced, and therefore the time spent traveling is reduced – reducing the generalised cost of every journey (by affecting the second "cost" mentioned in the previous paragraph). In fact, this is one of the key justifications for construction of new road capacity (the reduction in journey times).

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