Travelers Driving Through Gotham City Can Use a Freeway or the Cross

question 76

Essay

Travelers driving through Gotham City can use a freeway or the Cross Town Tollway to get through the city. The tollway charges $1.00 per car during the morning rush hour (6-9 AM) and the afternoon rush hour (4-7 PM), and the toll is $0.40 per car at all other times. The weekly demand for using the tollway during rush hour is where quantity demanded is measured in thousands of cars, and the weekly demand for the non-rush hour period is Gotham City's marginal cost of operating the tollway is per car.
a. What are the marginal revenue curves associated with the two demand curves?
b. Has the city set the profit maximizing tolls for the Cross Town Tollway? If not, do the current tolls generate too much or too little traffic on the tollway?

Analyze the effects of shifts in aggregate demand and aggregate supply on economic equilibrium.

Explain the role of expectations in influencing the economy's adjustment process.

Understand the factors that shift the aggregate supply curves in the short run and long run.

Describe the impact of resource price flexibility on economic equilibrium.

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Definitions:

Zygote's Inner Cells

Zygote's inner cells, part of the blastocyst, give rise to the embryo and ultimately the fetus, playing a crucial role in early human development.

Rooting

An innate reflex in infants that causes them to turn their head toward a touch on their cheek or mouth, facilitating breastfeeding.

Nourishment

The substances necessary for growth, health, and good condition, usually obtained from food.

Fetus

A developing mammal or human from usually two months after conception to birth.