1. Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The demand for bridge crossings, Q, is given by P = 15 — 0.50.

(a) Draw the demand curve for bridge crossings.

(b) How many people would cross the bridge if there were no tolls?

(c) What is the revenue associated with a bridge toll of $5?

(d) Consider an increase in the toll to $7. At this new higher price, how many people would cross the bridge? Would the toll bridge revenue increase or decrease? What does your answer tell you about the elasticity of demand?