The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote.
Building the swimming pool would ________ total economic surplus because ________.
A) decrease; the total cost of the pool is greater than the total social benefit of the pool
B) decrease; taxes would have to be collected to build the pool
C) increase; the total social benefit of the pool is greater than the total cost of the pool
D) increase; the cost of building the pool can be passed to users from other towns
Correct Answer:
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