Q no 2:

Assume that the demand for travel over a bridge takes the form Y _ 1,000,000 _ 50,000P, where Y is the number of trips over the bridge and P is the bridge toll (in dollars).

a: Calculate the consumer surplus if the bridge toll is$0, $1, and $20.

b. Assume that the cost of the bridge is $1,800,000.Calculate the toll at which the bridge owner breaks even. What is the consumer surplus at the breakeven toll?

c. Assume that the cost of the bridge is $8 million. Explain why the bridge should be built even though there is no toll that will cover the cost