Question

What do you think would happen to the number of cars crossing the Golden Gate bridge if the fee increased by $2.00 from 4:00 AM-10:00 AM. What affect would this have on total revenue?

Answer 1

Can I actually be mentioned that if the fee increased by $2 for the crossing of Golden Gate Bridge, it can be mentioned that the breadth is a necessity for many people travelling through that area because of the office work or due to the commitments and that is the reason why even the price is increased it is a necessity for them to pay and go through it and in this regard this necessity can be termed as inelastic demand and therefore if the price increased the total revenue also would increase for an inelastic demand and that is the reason why it can be mentioned that increase in the fee can increase the total revenue in this case