Hello!

The course is Introduction to Public Finance. Attached I have uploaded the three questions I need to be solved. Please show all work and follow the instructions provided.

Just in case, we are using the following book for reference:

Public Finance and Public Policy Jonathan Gruber Worth Publishers, 4th Edition, 2013 ISBN-10: 1-4292-7845-5 ISBN-13: 978-1-4292-7845-4

Please let me know if you have any questions.

Best.

Instructions: 1 In a neatly typed Word or PDF document; only scanned, handwritten graphs will be accepted. In each graph clearly identify the variables represented in each axis, the curves and important points (equilibrium, etc.). Handwritten equations are not accepted 2 ANSWERS TO THE QUESTIONS WILL BE SUBMITTED USING TURNITIN 3 Include each original question and the corresponding answer; 4 Include tables, if necessary, to show your work; If you are making assumptions, make them explicit. Lack of clarity will result in a lower grade. QUESTION 1 Suppose 10 people each have the demand Q = 20 - 4P for streetlights and 5 people have the demand Q = 18 - 2P for streetlights. The cost of building each streetlight is 3. If it is impossible to purchase a fractional number of streetlights, how many streetlights are socially optimal? QUESTION 2 The city of Gruberville is considering whether to build a new public swimming pool. This pool would have a capacity of 800 swimmers per day, and the proposed admission fee is $6 per swimmer per day. The estimated cost of the swimming pool, averaged over the life of the pool, is $4 per swimmer per day. Gruberville has hired you to assess this project. Fortunately, the neighboring identical town of Figlionia already has a pool, and the town has randomly varied the price of that pool to find how price affects usage. The results from their study follow: Swimming pool price per day $8 $10 $4 $6 $2 Number of swimmers per day 500 200 1,100 800 1,400 1. If the swimming pool is built as planned, what would be the net benefit per day from the swimming pool? What is the consumer surplus for swimmers? 2. Given this information, is an 800-swimmer pool the optimally sized pool for Gruberville to build? Explain. QUESTION 3 The city of Animaltown plans to build a new bridge across the river separating the two halves of the city for use by its residents. It is considering two plans for financing this bridge. Plan A calls for the bridge to be paid for out of tax revenues, allowing anyone to freely use the bridge. Plan B calls for imposing a toll of $6 for crossing the bridge, with the remainder of the cost to be paid out of tax revenues. City planners estimate a local demand curve for hourly use of the bridge to be Q = 1,800 - 100P. The bridge will be able to accommodate 2000 cars per hour without congestion. Which of the plans is more efficient, and why? How would your answer change if congestion was predicted on the bridge