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 11 p.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 11 p.m.?
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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 11 p.m.?

Quizplus · Accepted Answer

At 11 p.m., demand for freeway space is typically lower, so a toll of 0 can create equilibrium as the supply of freeway space meets the lower demand without needing a toll to regulate it.

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