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The demand for bridge crossings Q is given by P = 30 - 2Q. a. Draw the demand curve for bridge crossings. b. How many
The demand for bridge crossings Q is given by P = 30 - 2Q. a. Draw the demand curve for bridge crossings. b. How many people would cross the bridge if there were no toll? c. What is the loss of consumer surplus associated with a bridge toll of $10? d. The toll-bridge operator is considering an increase in the toll to $16. Would the toll- bridge revenue increase or decrease? What does your answer tell you about the elasticity of demand?
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