The Idea of Requiring Motorists to Pay to Use the Busiest

question 35

Multiple Choice

The idea of requiring motorists to pay to use the busiest streets in a city

• A)has been proposed by many public officials, but to date the idea never has been tried in a major city anywhere in the world.
• B)was tried in New York City in the 1990s, but the result was more - not less - congestion on busy streets, and the experiment was short-lived.
• C)reflects the fact that a congested road is a public good.
• D)reflects the fact that a congested road is a common resource.

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Definitions:

Total Revenue

The sum of money a company earns from selling products or providing services in a specific time frame.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service is highly responsive to changes in its price.

Inelastic

Characterizes a situation where the demand for a product is not significantly affected by changes in price.