Question: Hi, I need help with this question. 1. [12 pts] The current toll for the use of a certain toll road is $2.50. A study
Hi, I need help with this question.
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1. [12 pts] The current toll for the use of a certain toll road is $2.50. A study conducted by the state highway department determined that with a toll of p dollars, x cars will use the road, each day, where x = 60,000e -0.5p. a. Find the demand corresponding to the $2.50 toll. b. Compute the elasticity of demand at the $2.50 price. c. If the state increases the toll by 10%, how will the demand increase or decrease? Explain your result. d. Determine the value of p for which the value of E(p) = 1. Explain what this means
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