b. Because of the reduced use of the highway, the government would reduce its purchases of concrete from 20,000 tons per year to 19,000 tons per year. Thus, if the price of concrete were $25 per ton, the government's cost savings would be $25,000. However the government's reduced demand for concrete causes its market price to fall from $25 per ton to $24.50 per ton. Moreover, because of this reduction in price, the purchases of concrete by non- government buyers increase by 300 tons per year. Assuming that the factor market for concrete is competitive, can the government's savings of $25,000 be appropriately used as the measure of the social value of the cost savings that result from the government purchasing less concrete? Or would shadow pricing be necessary? Part of the government's $25,000 savings from purchasing less concrete are offset by a reduction in surplus received by the producers of concrete Tho cio of the annual loss to producers of concrete is