If tolls on a toll road can be raised significantly before commuters will consider using a free alternative, demand for using the toll road must be
A)inelastic.
B)elastic.
C)unit elastic.
D)perfectly elastic.

Question

Quizplus · Accepted Answer

If tolls on a toll road can be raised significantly before commuters will consider using a free alternative, it indicates that the commuters have few, if any, close substitutes for the toll road. Therefore, they have no other options but to use the toll road even if the tolls are raising considerably. This behavior shows inelastic demand.

If Tolls on a Toll Road Can Be Raised Significantly