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Refer to the previous question. The government finds that it would cost $70 to improve the transportation infrastructure to reduce the supply curve...

Refer to the previous question. The government finds that it would cost $70 to improve the transportation infrastructure to reduce the supply curve to P = 2 + 3Q. This amount ($70) must be raised from either taxing the surplus of the producers or taxing the income of the consumers or taxing both. The government declares that it will follow a policy of free trade - but it will collect taxes worth $70 to improve the infrastructure. Which of the following is possible? Assume that the benefits and costs of infrastructure improvements are for one time only - i.e., ignore all long run implications.

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