Problemns - Chapter 9 2. In a study about endangered species protection, Americans stated that they were willing to pay 70 billion to protect all endangered species. They also stated that they were willing to pay 515 billion to protect a single species. Which problem with Lindahl pricing does this demonstrate? Explain. 3. The preference revelation problem associated with Lindahl pricing becomes more severe as the number of people in society increases. Why do you think this is true? 4. Major League Baseball uses what is known as a 5-3-1 system to vote for the league's most valuable player (MVP} in each league. Each voter gets to vote for three different players they consider worthy of the award. Their first-place candidate gets 5 points, their second-place candidate gets 3 points, and their third-place candidate gets 1 point. Points are then added up across all voters, and the player with the most total points wins the award. Suppose there are three votersNeyer, Law, and Phillipsand five potential candidates for the award Alex, David, Raffy, Manny, and Mario. The following table shows how each voter ranks the candidates. In addition, note that candidate Raffy is embroiled in a substance abuse scandal. A verdict on his guilt or innocence, will be made public one day before voting for MVP. A guilty verdict will nullify his votes. Rank Neyer Law Phillips Best David David Raffy Second Best Alex Alex Alex Third Best Raffy Raffy Manny Fourth Best Manny Manny Marig Fifth Best Maria Maria David a. Who will win the MVP if Raffy is found innocent? b. Who will win the MVF if Raffy is found guilty? & What problem with consistent aggregation does this MVP example illustrate? 5. Research shows that when congressional districts are redrawn to include more older adults, members of Congress become more likely to take pro-elderly positions in congressional votes. Explain why the median voter model predicts this outeome. 6. A problem with the median voter cutcome is that it does not take into account intensity of preferences. Suppose that the government decided to give every voter a fixed number of votes, which they may allocate freely across all questions on the ballot. Would this solve the problem? Why ar why not