Table 11-1 Consider the Town of Springfield with Only Three Residents, Sophia

question 295

Multiple Choice

Table 11-1
Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The table below shows each resident's willingness to pay for each acre of the park.
-Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

• A)1 acres
• B)2 acres
• C)3 acres
• D)4 acres

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Definitions:

Lessee

An individual or entity that leases property or equipment from another party, the lessor.

Landlord-Tenant Relationship

The legal and personal relationship between a property owner and the person renting that property.

Fair Housing Act (FHA)

A law enacted in the United States in 1968 aimed at prohibiting discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex, (and as later amended) disability and family status.

Cognitively Disabled

Cognitively disabled refers to individuals who have significant limitations in intellectual functioning and adaptive behavior, affecting their social and practical skills.