Consider a community of 3 households. The marginal benefit/inverse demand for school quality (denoted as S) for each household is given blew:

MB₁=250-S,MB₂=150-S,MB₃=50-S

The marginal cost of increasing school quality is 300 per unit. Whatever school quality is chosen for the school will apply to all pupils.

The community government finances the school with property taxes. The share of costs per unit to a household will be equal to the proportion of community property value the household owns. Property values are distributed: Value 1 = 150,000, Value 2 = 100,000, Value 3 = 50,000. The community government will provide the largest quantity that a majority of the households will support. What is the majority voting choice?