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suppose the government is considering an increase in the toll on a certain stretch of highway from $3 to $4. at present, 1 million cars
suppose the government is considering an increase in the toll on a certain stretch of highway from $3 to $4. at present, 1 million cars use that highway stretch each week; after the toll is imposed, the number of cars per week will change according to its price elasticity of demand of -1.4 (this elasticity value is estimated based on the initial-value method). if the marginal cost of highway use is constant (i.e. the supply curve is horizontal) and equal to $3 per car, what is the net annual cost to society attributable to the increase in the toll
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