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

question 170

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 following table shows each resident's willingness to pay for each acre of the park.
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-Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus) , what is the largest park size for which the majority of residents would vote "yes?"

• A)0 acres
• B)1 acre
• C)2 acres
• D)3 acres

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Definitions:

Low Price

Describes a situation where goods or services are offered for sale at a price lower than usual or the market average.

Collude

The act of cooperating or conspiring, especially in a secretive way, with others to deceive or defraud.

Cable TV Market

A segment of the media industry where companies provide television programs to consumers via coaxial or fiber-optic cables.

High Price

A term referring to goods or services being offered at a rate considered above the average or expected market value.