A public good that would benefit Karen,Tammy,and Max has a one time installation cost of $900.These three voters must approve any tax plan by simple majority and all three will cast a vote.
Since the government does not know and cannot discover the voters' true reservation prices,it proposes a head tax of $300 per voter.The result of the referendum is
A) the tax passes and the public good is provided.
B) Max votes for the tax but Kris and Taylor vote against it and it fails.
C) Max votes for the tax,Kris votes against it but Taylor's vote is uncertain.
D) all three voters vote against the tax.
Correct Answer:
Verified
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A)a larger percentage
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Q51: The very small city of Pleasantville
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