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Question 1- The Western Harbour Crossing has no traffic congestion problem. In July 2019, its tolls increased.~ a. With the aid of a diagram, explain

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Question 1- The Western Harbour Crossing has no traffic congestion problem. In July 2019, its tolls increased.~ a. With the aid of a diagram, explain under what condition an increase in the tolls would increase the sales revenue of the tunnel company. (11 marks) b. At the same time, the traffic using the Cross Harbour Tunnel is congested during the rush hours. While the tolls of the Western Harbour Crossing increased, the tolls of the Cross Harbour Tunnel remained unchanged. With the aid of a diagram, explain why in this situation, the traffic using the Cross Harbour Tunnel during the rush hours would become more congested. - (11 marks) c. The tolls of Western Harbour Crossing are expected to increase in the coming years, based on historical trend. The toll differential between Western Harbour Crossing and Cross Harbour Tunnel would be increased. Therefore, Hong Kong government proposed adjustments to the toll levels for private cars, taxis and motorcycles as follows. The toll levels for private cars, taxis and motorcycles can be frozen under the proposal, refraining further toll increase before the expiry of Western Harbour Crossing franchise in August 2023.~ Vehicle type Western Harbour Crossing Cross Harbour Tunnel Private cars $70 ($240)# - $50- $20 - $40- Taxis (with passengers)." $65 ($240)# - $36- $10 - $20- Taxis (without $65 ($240)# + $15- $10 - $15- passengers) + Motorcycles $25 ($140)# -+ $20- $8 - $16- Franchised buses Waived Paid by government Explain, with a demand and supply diagram, how government's toll adjustment proposal drops the traffic pressure of Cross Harbour Tunnel. (11 marks)

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