11 Suppose there exists a costless way to charge drivers on the freeway. Under this costless system,
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11 Suppose there exists a costless way to charge drivers on the freeway. Under this costless system, tolls on the freeway would be adjusted according to traffic conditions. For example, when traffic is usually heavy, such as from 6:30 a.m.
to 9:00 a.m. on a weekday, the toll to drive on the freeway would be higher than the toll would be when traffic is light.
In other words, freeway tolls would be used to equate the demand for freeway space and the supply of freeway space.
Would you be in favor of such a system to replace our current
(largely, zero-price) system? Explain your answer.
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