Exhibit 5-1
-Refer to Exhibit 5-1, which shows supply and demand for freeway space at both 8 a.m. Graphically, the result of the increase in freeway space would be shown by a.m. and 11 p.m. Suppose that the government decides to set the money price of driving on the freeway at zero, but builds more freeways to eliminate the shortage of freeway space at 8 a.m. Graphically, the result of the increase in freeway space would be shown by a. shifting the supply of freeway space curve rightward.
A) shifting the supply of freeway space curve rightward.
B) shifting the demand for freeway space curve leftward from D8a.m. to D11p.m.
C) a movement up along D8a.m. to the point where D8a.m. intersects the supply curve.
D) shifting the supply of freeway space curve leftward.
Correct Answer:
Verified
Q25: Q29: If the supply of aisle seats equals Q30: When congestion occurs on the freeway (because
