Multiple Choice
The following data show the relationship between the number of drivers who leave for work at 8:00 a.m. ,their average commute times,and their marginal benefit associated with the commute times.
-Refer to the data above.Imposing a toll of $5 if one leaves between 8:00 a.m.and 9:00 a.m.__________ because __________.
A) reduces total economic surplus;citizens are paying for the highway more than once
B) improves total economic surplus;the government now has more tax revenue
C) reduces total economic surplus;drivers do not change their behaviour and pay $5
D) improves total economic surplus;the highway is no longer treated as having a price of zero
E) reduces total economic surplus;the government now has more tax revenue
Correct Answer:

Verified
Correct Answer:
Verified
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