Determinethe volume of traffic that would cross the bridge

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Reference no: EM13541260

A bridge has been constructed between the mainland and an island.The total cost (excluding tolls) to travel across the bridge isexpressed as C = 50 + 0.5V, where V is the number of veh/h and C isthe cost/vehicle in cents. The demand for travel across the bridgeis V = 2500 - 10C.

(a) Determine the volume of traffic across the bridge.

(b) If a toll of 25 cents is added, what is the volume across thebridge?

(c) A tollbooth is to be added, thus reducing the travel time tocross the bridge. The new cost function is C = 50 + 0.2V. Determinethe volume of traffic that would cross the bridge.

(d) Determine the toll to yield the highest revenue for demand andsupply function in part (a) and the associated demand andrevenue.

Reference no: EM13541260

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