In 2011, police in Appleton, WI, shut down a lemonade stand run by two young girls. The girls, who live near the venue for the annual Appleton Old Car Show, were subject to a recent ordinance that barred anyone from selling products within a two-block radius from local events. Local Alderman Peter Stueck defended the law, saying, "It's certainly not that Appleton is against little girls setting up their cookie and lemonade stands. But the overall intent of the ordinance was to protect the vendors at these events."
Which concept best explains why this law had support to begin with?

Question

Quizplus · Accepted Answer

The concept of diffuse costs and concentrated benefits explains why this law had support to begin with. The law protected the vendors at local events, who likely had concentrated benefits from the ordinance, while the cost of shutting down the lemonade stand was diffused among the young girls who were affected. Therefore, the law had support despite its negative impact on individual citizens.

In 2011, Police in Appleton, WI, Shut Down a Lemonade