Exhibit 5-1

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

Question

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

Quizplus · Accepted Answer

At 11 p.m., the demand for freeway space is lower, and it's likely that the supply exceeds demand at this time without the need for a toll. Therefore, a toll of 0 would create equilibrium by not affecting the already balanced supply and demand.

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