1. Suppose an experiment is conducted that provides the data in the accompanying table. What is the price elasticity of demand for using the tollway when the price falls from $8 to $6 (use the midpoint method). Is it elastic or inelastic? Finally, calculate the change in toll revenue when the toll rate changes. Which rate should the toll road charge if the government wants more toll revenue?

Toll rate Number of vehicles using the tollway per day

$8 10,000

$6 12,000