After many years, a small community builds a toll road but discovers it is littl

Question

After many years, a small community builds a toll road but discovers it is little used. If it wishes the road to be used at the socially optimal level, the community should: set the toll higher. set the toll lower. build another toll road. set the toll equal to $1. After many years, a small community builds a toll road but discovers it is little used. If it wishes the road to be used at the socially optimal level, the community should: set the toll higher. set the toll lower. build another toll road. set the toll equal to $1.

Explanation / Answer

By setting the toll lower, demand increases and more and more people would start using the toll.

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