Table : TABLE 5-2 Price Elasticity of Demand and Total Revenue
Price of toll = $0.90 Price of toll = $1.10
Unit-elastic demand
(price elasticity of demand = 1)
Quantity demanded 1,100 900
Total revenue $990 $990
Inelastic demand
(price elasticity of demand = 0.5)
Quantity demanded 1,050 950
Total revenue $945 $1,045
Elastic demand
(price elasticity of demand = 2)
Quantity demanded 1,200 800
Total revenue $1,080 $880