1.A number of years ago tolls were removed from bridges in Jacksonville.The single biggest reason given for this was to speed traffic flow across the bridges.Shortly after this action, congestion was such that traffic slowed anyway.Use supply and demand and price elasticity to explain why this occurred.Given that the ability of any given bridge to carry traffic is fixed and that the goal was to reduce congestion, explain how an increase in tolls might have worked to achieve this end result.

2.Sue collects china dolls.Each doll costs $100.On her birthday she receives two presents.Her husband gives her a nice card with $100 cash.In the card he wrote, "I know how much you love your china dolls.Use the enclosed to go purchase one."Her sister Joan gives her an actual china doll that was not part of her existing collection.A pure economist would likely argue that Sue would prefer the cash because it maximizes choice.Considering the idea that a gift is bundle of various characteristics is this necessarily true?Explain?