The Delaware River Joint Toll Bridge Commission increased the toll from $0.50 to $1.00 on the bridges on Route 22 and Interstate 78 from New Jersey to Pennsylvania. Use the information in the following table to answer the questions. (Assume that besides the toll change, nothing occurred during the months that would affect consumer demand.)
| Number of Vehicles Crossing the Bridge |
| Month |
Toll |
Route 22 Bridge |
Interstate 78 Bridge |
| November |
$0.05 |
519,337 |
728,022 |
| December |
1 |
433,691 |
656,257 |
a. Calculate the price elasticity of demand for each bridge, using the midpoint formula.
b. How much total revenue did the commission collect from these bridges in November? How much did it collect in December? Relate your answer to your answer in (a).
Source: Garrett Therolf, "Frugal Drivers Flood Free Bridge," The Morning Call, January 20, 2003.