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A three person city wants to hold a fireworks display for the 4th of July. David is willing to pay $60, Moira is willing to
A three person city wants to hold a fireworks display for the 4th of July. David is willing to pay $60, Moira is willing to pay $20, and Alexis is willing to $15 for the fireworks. The cost of the show is $70.
(a) What type of good is the fireworks show? Should the fireworks show be offered from an efficiency standpoint?
(b) Would any individual put on the show themself?
(c) If the town voted on a $30 tax, and it took a majority to win, would the show happen? How many would vote for the show?
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