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m) Two ways to compensate consumers for price rises due to the tax are and Recall, this would onlyr be an actual Pareto improvement if at least one person is better off due to the tax and no one is worse off. It is called a Potential Pareto Improvement because the total social surplus change due to the tax is positive. so it should be possible in principle for winners to compensate the losers from the policy. In practice, this would be difcult to achieve