The Fraser is a large river running through the Fraser Valley and past the city of Vancouver. The original port Mann bridge, built in 1963, was replaced by a new toll bridge in 2013. Another crossing at the old Pattullo bridge is not tolled, and is about two miles downstream from the new Port Mann toll bridge. Since the new toll was put in place, traffic on the un-tolled Pattullo bridge has increased by almost 3 times. Local users of the bride have described it as a nightmare since the $3 tolls have gone on the Port Mann bridge.
A. From this information, explain whether the two bridges are complements or substitutes.
B. If a survey was don’t on travellers of both bridges, asking what was the purpose for crossing the bridge, would we expect the reasons to be the same? That is, do you think the drivers on the tolled Port Mann are crossing for the same reasons, on average, as the drivers of the untolled Pattullo bridge? What would be the difference, if there is one?
C. If a toll of equal value was placed on the Pattullo bridge, would traffic volumes on each bridge return to what they were before there were tolls? (Assume there are only 2 crossings)