Final answer:
To maximize revenue, the Bentlyville Road Toll Board would need to gather additional information on the elasticity of demand for the toll. This can be done by collecting data on the number of cars that cross the toll road at different prices. By understanding the sensitivity of drivers to price changes, the Board can decide whether to increase or decrease the toll.
Step-by-step explanation:
To determine whether the toll should be increased or decreased to maximize revenue, the Bentlyville Road Toll Board would need to gather additional information about the demand for the toll. Specifically, they would need to collect data on the elasticity of demand for the toll. Elasticity of demand measures the responsiveness of quantity demanded to changes in price. If demand for the toll is inelastic, increasing the toll may generate more revenue. On the other hand, if demand is elastic, decreasing the toll may increase revenue.
The Board should conduct surveys or gather data on the number of cars that cross the toll road at different prices. This will help them understand how sensitive drivers are to changes in price and whether they are willing to pay higher or lower tolls. Based on the elasticity of demand, the Board can decide whether to increase or decrease the toll to maximize revenue.
For example, if the demand for the toll is inelastic (i.e., there is a minimal change in quantity demanded when prices change), the Board can consider increasing the toll to generate more revenue. Conversely, if the demand is elastic (i.e., there is a significant change in quantity demanded when prices change), the Board may need to decrease the toll to attract more drivers and maximize revenue. The decision will depend on the specific circumstances and the elasticity of demand for the toll.