Final answer:
To maximize revenue from tolls, the city should charge a toll in the inelastic portion of the demand curve, as drivers' quantity demanded is less sensitive to price changes, ensuring the city can increase revenues without a substantial decrease in crossings. The dependent variable in this scenario is the number of drivers crossing the bridge.
Step-by-step explanation:
Considering the scenario where a city charges varying tolls for crossing a bridge and gathers data on the number of drivers who cross, the goal of maximizing revenue through tolls is best achieved by setting the toll in the inelastic portion of the demand curve.
In the inelastic portion, the quantity demanded does not change significantly with a change in price. Therefore, an increase in the toll will not lead to a substantial decrease in the number of drivers crossing the bridge, allowing the city to collect more revenue without losing many customers. Conversely, in the elastic portion, drivers are more price sensitive. A higher toll would cause a significant reduction in the number of drivers, lowering potential revenue. Setting the toll in the unit elastic portion is not ideal for maximizing revenue either, as revenue gains from higher pricing would be offset by proportional reductions in bridge crossings.
The dependent variable in this scenario would be the number of drivers crossing the bridge, as it depends on the toll charged, making the toll the independent variable. This reflects the relationship between the variables; the toll rate is set by the city, and the drivers' response (crossing the bridge) varies accordingly.