A Variable Toll on a Road in Washington Reached a High

question 300

Multiple Choice

A variable toll on a road in Washington reached a high during the evening rush hour of $5.75. This toll bought the drivers who paid it a 27 minute time savings. Which of the following is correct?

• A)For some consumers, the toll was less than the opportunity cost of the time they would have spent in traffic.
• B)For some consumers, the toll was more than the opportunity cost of the time they would have spent in traffic.
• C)No consumers would find this toll worth the time saved in traffic.
• D)Both a and b are correct.

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Definitions:

University of Michigan

A public research university located in Ann Arbor, Michigan, known for its rigorous academic programs and significant contributions to research.

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The process of determining how sensitive the quantity demanded of a good is to a change in its price.

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