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. A toll of P₂ creates __________ at 8 a.m. and __________ 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. A toll of P₂ creates __________ at 8 a.m. and __________ at 11 p.m.

Quizplus · Accepted Answer

A toll of P₂ creates equilibrium at both 8 a.m. and 11 p.m. This is where the quantity supplied and quantity demanded are equal, resulting in neither a shortage nor a surplus.

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