When congestion occurs on the freeway (because of a shortage of freeway space),an economist would most likely explain this by saying that it is because
A) the freeway has too few miles of roadway.
B) there are too many cars.
C) the price of driving on the freeway is below the equilibrium price.
D) a and c

Question

Quizplus · Accepted Answer

An economist would most likely explain the congestion on the freeway as being caused by the price of driving on the freeway being below the equilibrium price. This means that there is excessive demand for the limited freeway space, leading to congestion. It is not necessarily because there are too few miles of roadway or too many cars, although these factors could contribute to the demand for freeway space.

When Congestion Occurs on the Freeway (Because of a Shortage