Solved

Kris, Taylor and Max Are the Only Three Residents in a Neighborhood

Question 93

Multiple Choice

Kris, Taylor and Max are the only three residents in a neighborhood. A public good that would benefit all of them has a one-time installation cost of $900. The value of the public good to each resident is shown in the table below. Any tax plan must be approved by simple majority.  Resident  Reservatim Price  Incame  Kris $100$1,000 Taylor $200$5,000 Max $700$6,000\begin{array} { | c | c | c | } \hline { \text { Resident } } & \text { Reservatim Price } & \text { Incame } \\\hline \text { Kris } & \$ 100 & \$ 1,000 \\\hline \text { Taylor } & \$ 200 & \$ 5,000 \\\hline \text { Max } & \$ 700 & \$ 6,000 \\\hline\end{array}  
If the government proposes to pay for the public good with a head tax of $300 per resident, then


A) all three will vote in favor of the tax.
B) Max will vote in favor of the tax, but Kris and Taylor will vote against it.
C) Max will vote against the tax, but Kris and Taylor will vote in favor of it.
D) all three residents will vote against the tax.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions