John Has Been Gardening for Sally Once a Week for R200

question 41

Essay

John has been gardening for Sally once a week for R200. John's opportunity cost is R150, and Sally would be willing to pay R250 for the gardening tasks. What is the maximum tax the government could impose on gardening without discouraging John and Sally from continuing their mutually beneficial arrangement?

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Definitions:

Savant Syndrome

A condition where an individual possesses significant cognitive abilities or talents, particularly in memory or mathematics, despite potential disabilities.

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A rare genetic neurological disorder that predominantly affects females, leading to severe cognitive and physical impairments starting in early childhood.

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