Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 1 - Introduction: What Is Economics? - Exercises - 1.2 Economic Analysis and Modern Problems - Page 14: 2.1

Answer

b - charge a toll

Work Step by Step

An economist would likely suggest option (b), charging a toll. Increasing the cost would lead the consumer (the drivers) to look for alternatives such as (a) and (c). Charging a congestion toll during rush hour makes drivers face the true cost of using crowded roads, reducing traffic voluntarily rather than through mandates like carpooling or relocation.
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