traffic congestion will lead to the decrease on the MSB and then cause the deadweight loss

Consider the use of tolled highways. When the number of cars using the highway exceeds a certain level, there will be traffic congestion such that drivers are creating negative consumption externalities. Suppose a government official proposes to increase the toll to a level that can eliminate congestion. 6.1 a) Discuss how the negative consumption externalities arise. In particular, who create(s) the externalities and who suffer from them? b) Draw a diagram to represent the above situation. In your diagram, indicate the unregulated market quantity and socially efficient quantity. Is there over-congestion in the unregulated market? c) What is the outcome under the proposal of the government official? Explain whether you agree with this proposal. Hint: 1) Externalities may not start from the very first unit. (2) Eliminating congestion means to remove it totally.] Consider the use of tolled highways. When the number of cars using the highway exceeds a certain level, there will be traffic congestion such that drivers are creating negative consumption externalities. Suppose a government official proposes to increase the toll to a level that can eliminate congestion. 6.1 a) Discuss how the negative consumption externalities arise. In particular, who create(s) the externalities and who suffer from them? b) Draw a diagram to represent the above situation. In your diagram, indicate the unregulated market quantity and socially efficient quantity. Is there over-congestion in the unregulated market? c) What is the outcome under the proposal of the government official? Explain whether you agree with this proposal. Hint: 1) Externalities may not start from the very first unit. (2) Eliminating congestion means to remove it totally.]