Commuters in New York Often Install Radio Frequency Identification (RFID)

question 19

Multiple Choice

Commuters in New York often install radio frequency identification (RFID) devices on their cars that can be read automatically as they approach a toll booth. This saves time, improves traffic flow, and means drivers don't need exact change. Also, New York authorities can manage traffic flow by charging different toll amounts for different times, such as charging a higher toll for morning and afternoon rush hour periods. This pricing strategy is

• A) price gouging.
• B) off-peak pricing.
• C) flow management pricing.
• D) price differentiation.
• E) idle production pricing.

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Definitions:

Equilibrium Prices

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, leading to a stable market condition where there is no tendency for change.

Seating Capacity

The number of people who can be accommodated in a space, such as a vehicle, room, or venue, based on the available seats.

Tax Revenue

The revenue that governments acquire by imposing taxes.

Output Efficiency

A state where resources are allocated in the most effective manner, producing the maximum amount of goods and services.