12a - P with toll no congestion P with economist toll K A B...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Q 2 Equilibrium with economist’s toll Q 5 MAX Q 4 Unstable Q 1 Equilibrium without toll Q 3 Without congestion L MF C D E G B A I H K P = $ per mile plus inconvenience (assumes inconvenience is class neutral (theoretical and political reasons) N P with toll, no congestion P with economist toll
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
P with toll, no congestion P with economist toll Economist Case Tolled = Q2 Tolled off = Q2 - Q1 Q 5 MAX Q 4 Unstable Q 1 Equilibrium without toll Q 2 Equilibrium with economist’s toll Q 3 Without congestion L MF C D E G B A I H K Toll Revenue N Congestion Cost Lost Consumer Surplus P = $ per mile plus inconvenience (assumes inconvenience is class neutral (theoretical and political reasons)
Background image of page 2
Q 2 Equilibrium with economist’s toll Q 3 Without congestion Tolled = Q3 Tolled off = Q1 - Q3 Increment tolled off = Q2 - Q3 Lost Consumer Surplus P with toll, no
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 12/06/2011 for the course ESD 11.380j taught by Professor Fredsalvucci during the Fall '02 term at MIT.

Page1 / 4

12a - P with toll no congestion P with economist toll K A B...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online