The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times.
-Refer to the data above.Imposing a toll of $5 if one leaves between 8:00 a.m.and 9:00 a.m.__________ because __________.
A) reduces total economic surplus;citizens are paying for the highway more than once
B) improves total economic surplus;the government now has more tax revenue
C) reduces total economic surplus;drivers do not change their behaviour and pay $5
D) improves total economic surplus;the highway is no longer treated as having a price of zero
E) reduces total economic surplus;the government now has more tax revenue

Question

The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times. 
-Refer to the data above.Imposing a toll of $5 if one leaves between 8:00 a.m.and 9:00 a.m.__________ because __________.
A) reduces total economic surplus;citizens are paying for the highway more than once 
B) improves total economic surplus;the government now has more tax revenue 
C) reduces total economic surplus;drivers do not change their behaviour and pay $5 
D) improves total economic surplus;the highway is no longer treated as having a price of zero 
E) reduces total economic surplus;the government now has more tax revenue

Quizplus · Accepted Answer

Imposing a toll can improve total economic surplus by reducing congestion, as it reflects the true cost of using the highway during peak times, thus optimizing resource allocation.

The Following Data Show the Relationship Between the Number of Drivers