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6. Using the sorting model from figure 8-1, explain why municipalitieseighborhoods tend to be homogenous with respect to WTP for a public good. What will

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6. Using the sorting model from figure 8-1, explain why municipalitieseighborhoods tend to be homogenous with respect to WTP for a public good. What will end up happening when we start out with a neighborhood with a mix of WTP "types" (like with parks in our example)? Make sure to discuss the median voter concept. FIGURE 8-1 Diversity of Demand for Local Public Good The demand curves of the individual citizens show their marginal benefits of park acres. With a tax of $20 per person per acre, Lois prefers six acres, Marian prefers 12 acres, and Hiram prefers 28 acres. 6. Using the sorting model from figure 8-1, explain why municipalitieseighborhoods tend to be homogenous with respect to WTP for a public good. What will end up happening when we start out with a neighborhood with a mix of WTP "types" (like with parks in our example)? Make sure to discuss the median voter concept. FIGURE 8-1 Diversity of Demand for Local Public Good The demand curves of the individual citizens show their marginal benefits of park acres. With a tax of $20 per person per acre, Lois prefers six acres, Marian prefers 12 acres, and Hiram prefers 28 acres

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