Suppose the demand for crossing the Golden Gate Bridge is given by .
a. If the toll (P) is $3, how much revenue is collected?
b. What is the price elasticity of demand at this point?
c. Could the bridge authorities increase their revenues by changing their price?
d. The Red and White Lives, a ferry service that competes with the Golden Gate Bridge, began operating hovercrafts that made commuting by ferry much more convenient. How would this affect the elasticity of demand for trips across the Golden Gate Bridge?