3. [35 pts] Consider a one-way traffic lane being tracked electronically, and cars' effects on the traffic are measured as follows: Increase External trip Increase in Volume . in travel cost (cost of Marginal (if of time total travel an additional ' ' Benet vehicles (per vehicle) time (all vehicles) car to all (Demand) other cars) 23 29.4 1,500 27.5 0.025 40 1,800 33 0.029 52.2 2,000 39.2 0.033 55 where all cars bare $2 monetary cost for the trip (fix cost for this route and does not depend on the travel time or congestion), and opportunity cost per driver is 50.2 per minute spent driving. a. Fill in the highlighted cells (private and social trip costs for passengers > 600). b. Draw a graph and put volume of cars on your horizontal axis, and cost/benefit (S) on the vertical axis. Sketch private cost, social cost and demand curves on your graph (eyeballing is fine). What would the equilibrium number of vehicles on the road be? What should the socially optimal number of vehicles on the road be? e. Show what the optimal congestion tax be on your graph, and determine the exact 5 value for the optimal tax. Explain why. no