A toll bridge carries 5000 veh/day. the current tol is 50 cents. When the toll is increased by P0. 25. Traffic volume decreases by 5000 veh/day. Det. the additional amount of toll that should be charged such that the revenue is maximized.
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A toll bridge carries 5000 veh/day. the current tol is 50 cents. When the toll is increased by P0. 25. Traffic volume decreases by 5000 veh/day. Det. the additional amount of toll that should be charged such that the revenue is maximized.
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- A toll bridge carries 10,000 veh/day. The current toll is ₱150/vehicle. Studies shown that for eachincrease in toll of ₱25, the traffic volume will decrease by 1000 veh/day. It is desired to increasethe toll to a point where revenue will be maximized.a. Write the expression for travel demand on the bridge related to toll increase and currentvolume. b. Determine the toll charge to maximize revenues. c. Determine traffic in veh/day after toll increase. d. Determine the total revenue increase with new toll.The demand and supply function for a bridge are the following where C is cost in cents and V is volume in veh / h . Demand V = 1500 - 10C Supply or cost function: C = 120 + 0.5V (a) What is the equilibrium volume of traffic and the associated cost? (b) 20 cents of toll is added to the cost function, what will be the new cost function and the equilibrium volume?A bridge has been constructed between the mainland and an island. The total cost (excluding tolls) to travel across the bridge is expressed as C- 50 + 0.5V, where V is the number of veh/hr and Cis the cost/vehicle in cents. The demand for travel across the bridge is V- 2500 - 10C. (a) Determine the volume of traffic across the bridge. (b) If a toll of 25 cents is added, what is the volume across the bridge? What volume would be expected with a 50 cent increase? 155 (c) A tollbooth is to be added, thus reducing the travel time to cross the bridge. The new cost function is C- 50 + 0.2V. Determine the volume of traffic that would cross the bridge. (d) Determine the toll to yield the highest revenue for demand and supply function in part (a), and the associated demand and revenue
- 7. A toll bridge from Manila to Lapu-Lapu City carries 4000 vehicles per day. The present toll fee is P2.30. When the toll fee is increased by PO.20, traffic volume will decrease by 400 vehicles per day. It is desired to increase the toll fee to a point where revenue will be maximized. Determine the toll change to maximize revenue.A toll bridge carries 6000 vch/day The current toll is $3.50/vehicle. Studies have shown hat for each increase in toll of 50 cents, the traffic volume will decrease by 500 veh/day. Jus 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 the toll charge to maximize revenbes. (o Determine traffic in vel/day after the loll increase, (d) Determine the total revente increase with the new tol.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. Let V be the Volume X be the increase in toll charge (a) Write the expression for travel demand on the bridge related to toll increase and current volume. (b) Determine the increase in toll charge (c) Determine the new toll charge to maximize revenues. (d) Determine traffic in veh/day after toll increase. (e) Determine total revenue increase with new toll.
- Consideration is being given to increasing the toll on a bridge now carrying 4500 veh/day. The current toll is $1.35/veh. It has been found from past experience that the daily traffic volume will decrease by 400 veh/day for each 25¢ increase in toll. Therefore, if x iš 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 = 135 + 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?A city engineer has estimated the annual toll revenues from a proposed highway construction project over 20 years as follows: An = ($2,000,000)(n)(l.06)n-1 n = 1.2 .... ,20.To determine the amount of debt financing through bonds, the engineer was asked to present the estimated total present value of toll revenue at an interest rate of 6%. Assuming annual compounding, find the present value of the estimated toll revenue.1A toll bridge carries 10.000 veh/day. The current toll is PI50/vehicle. Stodies shown that for each ancrease in toot25, the traffic volume will decrease by 1000 veh daycedesired to ncrease the toll to a pocnt where revenue will be maximized. Write the expression for travel demand on the bridge related to toll increase and current yolume, Determame the toll chargc to maximıze revenues. Determine tmic in veh day after toll increase. Duermincshelutal revenue increase with new tall
- A bridge has been constructed between the mainland and an island. The total cost (excludingtolls) to travel across the bridge is expressed as C = 50 + 0.5V, where V is the number ofveh/hr and C is the cost/veh in pesos. The demand for travel across the bridge is V = 2500 −10C.a. Determine the volume of traffic across the bridge.b. If a toll of 25 pesos is added, what is the volume across the bridge?c. A tollbooth is to be added, thus reducing the travel time to cross the bridge. The new costfunction is C = 50 + 0.2V. Determine the volume of traffic that would cross the bridge.An existing toll road has an average traffic volume around 6,000 vehicles per day. A project is proposed to widen the toll road to increase the road capacity. It is projected that the traffic volume would increase to 10,000 vehicles if the toll rate is reduced from $5 to $4 per vehicle. Assume that the toll rate is the only factor affecting the traffic volume on the toll road. a) Determine the impact of the toll change on consumer surplus. b) Calculate the point elasticity of demand for the toll road. c) Calculate the arc elasticity of demand for the toll road.A household has 17 members and an annual income of P20,000. They currently live in a neighborhood with 550 retail employees, but are moving to a new home in a neighborhood with 150 retail employees. Calculate the additional vehicle-based peak- hour shopping trips the household makes before and after the move. Use: Vehicle-based Shopping Trips = 0.12 + 0.09HS + 0.011AHI - 0.15EH HS - household size AHI - annual household income in thousand pesos EH - employment in household's neighborhood in hundreds Note: use two decimal places