Suppose that a toll of $15 is charged to drive on a road, regardless of the time of day. If this toll brings about equilibrium travel flows at the busiest time of day, it will create __________ at all other times of day.
A)equilibrium
B)a shortage of toll road space
C)a surplus of toll road space
D)neither a shortage of toll road space nor a surplus of toll road space

Question

Quizplus · Accepted Answer

At times other than the busiest, the demand for road space is lower, so the fixed toll of $15 will likely result in fewer drivers using the road, creating a surplus of toll road space.

Suppose That a Toll of $15 Is Charged to Drive