consider-a-city-that-implements-a-congestion-charge-to-reduce-traffic-which-micr

Question

Consider a city that implements a congestion charge to reduce traffic. Which microeconomic principle does this illustrate?

Accepted Answer

Incentives can be used to alter behavior.

Answer

Elasticity measures responsiveness to price changes.

Answer

Supply and demand determine market prices.

Answer

Opportunity cost is the value of the next best alternative.