Problem

Officials are considering to increasing the toll on a bridge that now carries 4500 veh/d...

Officials are considering to increasing the toll on a bridge that now carries 4500 veh/day. The current toll is $1.25/veh. Experience has shown that the daily traffic volume will decrease by 400 veh/day for each 25 cent increase in toll. Therefore, if x is the increase in toll in cents/veh, the volume equation for veh/day is V = 4500 −400 (x/25), and the new toll/veh would be T = 125 + x. In order to maximize revenues, what would the new toll charge be per vehicle and what would the traffic in veh/day be after the toll increase?

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Solutions For Problems in Chapter 2