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

question 17

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.  
$$\begin{array} { | c | c | c | } \hline{ \text { Resident } } & \text { Reservatim Price } & \text { Incame } \\\hline \text { Kris } & \$ 100 & \$ 1,000 \\\hline \text { Taylor } & \$ 200 & \$ 5,000 \\\hline \text { Max } & \$ 700 & \$ 6,000 \\\hline\end{array}$$  
Suppose that the government knows each resident's reservation price. To collect no more than $900 in tax revenue, each resident should be charged ________ percent of their ________. 

• A)100; reservation price
• B)70; reservation price
• C)20; income
• D)90; reservation price

---

Definitions:

Branching

The deviation from a straight chain in a molecule by having side chains or branches in its structure.

Poly(vinyl Chloride)

A synthetic plastic polymer commonly known as PVC, used in a wide range of products due to its durability and flexibility.

Monomer Structure

The basic building block of a polymer, representing the simplest repeat unit that forms a larger chain through polymerization.

Polymer

Large molecules made up of repeating structural units known as monomers, used in a wide range of materials including plastics, textiles, and natural substances.