Question
1.Suppose that a city is considering building a bridge acrossa river.The bridge will be financed by tax dollars.The city gets revenues from a sales tax
1.Suppose that a city is considering building a bridge acrossa river.The bridge will be financed by tax dollars.The city gets revenues from a sales tax imposed on things sold in the city.The bridge would provide more direct access for commuters and shoppers.It would also alleviate the huge traffic jam that occurs every morning at the bridge down the river in another city.
a.Who would gain if the bridge were built?Could these gains be measured?How?Consider both the short run and the long run
b.Who would be hurt if the bridge were built?Could these costs be measured?How?
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