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.The reason drivers would prefer building new roads to a $5 toll to reduce commute times is that
A) building roads is the only solution.
B) they know a toll would not alter commuting behaviour.
C) cities always need new roads.
D) the cost of new roads falls on all taxpayers;the toll only falls on those who use the existing road.
E) they own stock in a highway construction firm.

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.The reason drivers would prefer building new roads to a $5 toll to reduce commute times is that
A) building roads is the only solution. 
B) they know a toll would not alter commuting behaviour. 
C) cities always need new roads. 
D) the cost of new roads falls on all taxpayers;the toll only falls on those who use the existing road. 
E) they own stock in a highway construction firm.

Quizplus · Accepted Answer

The marginal benefit associated with reduced commute times is higher than the $5 toll, which implies that the drivers would be willing to pay more than $5 to reduce their commute times. However, building new roads is a better solution as it would benefit all drivers and the cost would be spread among all taxpayers, rather than just those who use the existing road. Therefore, option D is the best choice.

The Following Data Show the Relationship Between the Number of Drivers