Question
Assume there are four people in a city. Person A owns nothing, person B owns a chicken shack worth $7,000, person C owns a plot
Assume there are four people in a city. Person A owns nothing, person B owns a chicken shack worth $7,000, person C owns a plot of land worth $233,000 and person D owns a house worth $960,000. They want to finance a public childrens zoo, a local public good. The zoo will cost $18,000 and should be financed by a property tax with equal tax rates per property value. Calculate the tax rate (in %) for the following cases
a. all four people live in the city
b. there is a city of four B-like people
c. there is a city of four C-like people
d. there is a city of four D-like people
e. there is a city of only one A, one B and one C (D has left).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started