Before Imposing Tolls, First Study Effects

The economic term ‘Elasticity of Demand’ measures how much consumer demand changes when a price changes.

How It Works on a Ferry:

• Elastic Demand: If the ferry raises its toll and people stop driving or use a different route, demand is elastic. Total revenue might fall because ridership drops a lot.

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• Inelastic Demand: If the ferry raises its toll and people keep riding because they have no other choice, demand is inelastic. Total revenue will rise because ridership stays high despite the higher price.