8. Suppose you are in charge of a toll bridge that costs essentially nothing to operate. The demand for bridge crossings Q is given by P = 15 – (1/2)Q.
a. Draw the demand curve for bridge crossings.
b. How many people would cross the bridge if there were no toll?
c. What is the loss of consumer surplus associated with a bridge toll of $5.
d. The toll-bridge operator is considering an increase in the toll to $9. At this higher price, how many people would cross the bridge? Would the toll-bridge revenue increase or decrease? What does your answer tell you about the elasticity of demand? Find the loss in consumer surplus between a toll of $5 and $9.