Determine how many cars would cross the bridge

Reference no: EM13209281

The demand equation for crossing the G.W.Bridge in New York City is P = 50-0.0001Q where P is the toll at the bridge and Q is the number of vehicles that cross the bridge every day.

a. Compute the toll that would maximize revenue for the state of New York. At this toll, how many cars would cross the bridge?

b. What is the price elasticity at this toll?

c. Also illustrate this price/quantity combination in a graph with demand curve and marginal revenue curve.

d. Suppose the company in charge of the maintenance of the bridge successfully negotiates a 20% increase in its annual fee. The State of New York hires you to advise them how to cover this cost. Would you advise them to raise the toll you computed in part a)? (Yes, or No, explain your answer). Would you advise them to raise revenue some other way?

Reference no: EM13209281

Questions Cloud

Determine the density of the solution : How many grams of Na2CO3 are present in 29.7 mL of a 31.0% Na2CO3 solution. The density of the solution is 1.09 g/mL.

What current federal public nuisance laws : What current federal public nuisance laws should be converted to private nuisances? why?

Which commodity will scotland trade to england : England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.

Explain what is the mole fraction of solute : What is the mole fraction of solute and the molal concentration for an aqueous solution

Determine how many cars would cross the bridge : Suppose the company in charge of the maintenance of the bridge successfully negotiates a 20% increase in its annual fee. The State of New York hires you to advise them how to cover this cost. Would you advise them to raise the toll you computed in..

Explain bacl and nacl : A 0.2 036 g sample containing only BaCl 2 and NaCl is dissolved in 5 0.0 mL of distilled water. Titration wi th 0.1410 M AgNO 3 requires 19.46 mL to reach the endpoint

Determine the gas pressure in torr : A sample of gas has a pressure of 328 torr while occupying a volume of 8.6 liters at 25 degrees Celsius. If the volume was reduced to 2.4

How many bottles of water does patrik drink in april : In April Patrick receives a 5% pay increase. Meanwhile the inflation raises the price of concerts to $10.50 and the price of Celtic Springs Water to $2.10. Draw Patrick's new budget constraint and optimal consumption bundle.

Inpatient and outpatient coding : Should there be a uniform standard of classification for both inpatient and outpatient coding?

User Account

All Pages