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

Question 84

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 proportional income tax of 8 percent, then:


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

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