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A. Suppose you are in charge of a Road Toll Gate that is essentially cost free. The demand for road crossing Q is given by
A. Suppose you are in charge of a Road Toll Gate that is essentially cost free. The demand for road crossing Q is given by ? = 12 2?. 4 i. Draw the demand curve for road crossings. [3marks] ii. How many people would cross the road if there as no toll? [2marks] iii. What is the loss of consumer surplus associated with a charge of a road toll of K6? [2marks]
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