A government is contemplating an increase from $2 to $2.5 in the toll on a highway that is - at present - used by 9,000 cars per day. After the toll is increased, it is projected that only 7,000 cars per day will use it. Assuming that the weekly marginal cost of highway use is equal to $1.8 per car:

1. Due to the reduced use of the highway, demand in the secondary market for train rides increases. Assuming that the price of train rides is set equal to the marginal cost of operating the train and marginal costs are constant (i.e., the supply schedule is horizontal), and no externalities are present, are there additional costs or benefits due to the increased demand for subway rides? Why or why not?