Problem

A toll bridge carries 10,000 veh/day. The current toll is $3.00/vehicle. Studies have sh...

A toll bridge carries 10,000 veh/day. The current toll is $3.00/vehicle. Studies have shown that for each increase in toll of 50 cents, the traffic volume will decrease by 1000 veh/day. It is desired to increase the toll to a point where revenue will be maximized.

(a) Write the expression for travel demand on the bridge related to toll increase and current volume.

(b) Determine toll charge to maximize revenues.

(c) Determine traffic in veh/day after toll increase.

(d) Determine total revenue increase with new toll.

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Solutions For Problems in Chapter 2