Microeconomics

Save & EXIt Submit Suppose that Katie and Kelly each expect to receive $500 worth of marginal benefits from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the proposed tax levied on each for the center would be $600, a majority vote will Multiple Choice 12 percent increase in price defeat this project and resources will be underallocated to it. 24 percentis O defeat this project and no resources will be allocated to it. 10 perce O pass this project and resources will be efficiently allocated to it. O pass this project and resources will be overallocated to it