Figure 142 Amit and Bree Are the Only Two Homeowners

question 12

Multiple Choice

Figure 14.2 Amit and Bree are the only two homeowners on an isolated private road.Both agree that installing street lights along the road would be beneficial and want to do so.Figure 14.2 shows their willingness to pay for different quantities of street lights, the market demand for street lights and the marginal cost of installing the street lights.
-Refer to Figure 14.2.The optimal quantity of street lights to install is

• A)3
• B)4
• C)6

---

Definitions:

Tax

A mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Economic Wants

Desires for goods and services that can be satisfied through market transactions or consumption, including basic needs and luxuries.

Unlimited Resources

A hypothetical situation where resources available for use are infinite, eliminating constraints on usage or production.

Recurring Theme

A motif or subject that appears repeatedly throughout a work of literature, music, or art, emphasizing a particular idea or message.