Suppose that Your College Town has two parallel fourlane roads connecting the college to the rest of

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Suppose that Your College Town has two parallel four‑lane roads connecting the college to the rest of the city. One goes from the college directly into the heart of town and is usually congested, particularly at rush hours and other times when there are special activities on campus (such as a concert or athletic event). There are no special tolls or charges for this road. The other runs two miles south of the first with a number of connecting streets and is seldom crowded. The state highway department would like to use the revenue from a gasoline tax increase to expand the first road to six lanes. Would such an expansion be called for on economic efficiency grounds? Does society lose anything if the second road is not used to capacity? How else might the congestion on the first road be alleviated? What if congestion tolls were not feasible?

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