N.J. Highway Tolls Are Starting to Go Permanently Cashless

More and more drivers on toll roads use EZ-Pass. Now New Jersey wants to use cashless tolling on all its toll roads. Collectors signed a new contract in 2020, which some considered their last agreement.—govtech.com

Answer the following questions to check your understanding of the story.

1) How does the increase in EZ-Pass drivers change the value of marginal product of toll collectors?

The increase in EZ-Pass drivers ______________.

a) decreases supply and the value of marginal product of toll collectors

b) decreases marginal product and the value of marginal product of toll collectors

c) doesn’t change the value of marginal product of toll collectors

d) increases the value of marginal product of toll collectors if the number of toll road users increases

2) As the price of cashless tolling technology falls, what is the outcome in the market for toll collectors?

Cashless tolling technology and toll collectors are ______________ so the falling price of cashless tolling technology ______________.

a) complements; creates a surplus of toll collectors

b) complements; decreases the demand for toll collectors

c) substitutes; decreases the supply of toll collectors

d) substitutes; decreases the demand for toll collectors

N.J. Highway Tolls Are Starting to Go Permanently Cashless

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