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Price (dollars per ride) Supply $23 D1 = marginal private benefit before tax D2 = marginal social benefit O 24 26 Quantity (thousands of rides

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Price (dollars per ride) Supply $23 D1 = marginal private benefit before tax D2 = marginal social benefit O 24 26 Quantity (thousands of rides per day) Figure 5-13 illustrates the market for shared rides before the government imposes a congestion tax. Refer to Figure 5-13. If the government wanted to achieve the efficient level of shared rides by imposing a congestion tax, the tax would raise the price paid by consumers by per ride. O $2 O $3 O $5

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