Question

A donor made a cash contribution in the amount of $1,000,000 to the City of Selma to be held as an endowment for the preservation and upkeep of the Edmund Pettus Bridge. To acct for endowment, city has created edmund pettus bridge endowment fund. Under terms of agreement, city must invest and conserve principal amount oif contribution on perpetuity. Earning measured on accrual basis are used to maintain the bridge. All changes in fair value fo no affecvt earnings. Fund type? Journal entry to record contribution?

Answer 1

To maximize revenue from tolls, the city should charge a toll in the inelastic portion of the demand curve.

Step-by-step explanation:

To raise as much revenue as possible from the tolls, the city should charge a toll in the inelastic portion of the demand curve. This is because when the demand is inelastic, a change in price has a relatively small impact on the quantity demanded. As a result, the city can increase the toll without significantly reducing the number of drivers crossing the bridge, generating more revenue.