Answer to Question #160995 in Economics for Ruthwik

Question

Suppose Andhra Pradesh government in charge of toll bridge that cost essential nothing to operate i.e.total costs equals zero. The demand for bridge crossing Q is given by p = 15- (1/2)Q

How many people would cross the bridge if there were no toll ?

Answer 1

If there were no toll, then p = MC = 0,

15 - 0.5Q = 0,

Q = 30.

So, the number of people who would cross the bridge is 30.