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The Washington Post reported that the toll on the Dulles Toll Road was raised from $3.25 to $4.00. Following the toll increase, traffic fell by
The Washington Post reported that the toll on the Dulles Toll Road was raised from $3.25 to $4.00. Following the toll increase, traffic fell by 5 percent. The head of the Metropolitan Washington Airports Authority (which operates the toll road on behalf of the Virginia Department of Transportation) audit committee warned that the toll increase could cause toll revenues to decrease by $48 million per year. Is this statement consistent with economic theory?
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