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Bristol Council has proposed a congestion charge for drivers living outside the city. The 'road user charge' would see a fee, perhaps 2, paid by

Bristol Council has proposed a congestion charge for drivers living outside the city. The 'road user charge' would see a fee, perhaps 2, paid by drivers to come into Bristol. The money raised would be invested in public transport in the city.

a) Explain the proposed congestion charge using microeconomic theory.

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