Assuming a negative externality is present, what happens to the value of the "optimal toll", which will ensure that the market produces the socially optimal amount of travel, when demand for travel increases? It decreases O It increases It stays the same

Assuming a negative externality is present, what happens to the value of the "optimal toll", which will ensure that the market produces the socially optimal amount of travel, when demand for travel increases? It decreases O It increases It stays the same

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter5: Difficult Cases For The Market And The Role Of Government

Section: Chapter Questions

Problem 5CQ

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