Exhibit 5-1

-Refer to Exhibit 5-1,which shows supply and demand for freeway space at both 8a.m.and 11 p.m.Which toll creates equilibrium at 8a.m.?

Name: Exhibit 5-1 -Refer to Exhibit 5-1,which shows supply and demand for freeway space at both 8a.m.and 11 p.m.Which toll creates equilibrium at 8a.m.?
Brand: Quizplus
Rating: 4.9 (43 reviews)

Question

Exhibit 5-1
 
-Refer to Exhibit 5-1,which shows supply and demand for freeway space at both 8a.m.and 11 p.m.Which toll creates equilibrium at 8a.m.?

Quizplus · Accepted Answer

At 8 a.m., the demand for freeway space is higher, so a higher toll, P₂, is needed to reduce demand and reach equilibrium.

Exhibit 5-1 -Refer to Exhibit 5-1,which Shows Supply and Demand for Freeway