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Analyze the intricate dynamics of traffic flow theory and its application in transportation engineering. Describe fundamental concepts such as traffic flow models, capacity analysis, and congestion mitigation strategies. Discuss how traffic flow theory informs transportation planning and roadway design, considering factors such as traffic volume, speed-flow relationships, and travel demand patterns, to optimize traffic operations, improve safety, and enhance mobility in urban and rural transportation networks amidst evolving transportation technologies and mobility trends.

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