Scholarville 3 residents: Kant, Hume, and Russell Outdoor summer philosophy lectures are a public good The cost of an outdoor philosophy lecture is constant and is equal to $900 per lecture A decision has to be made whether to have 1 or 2 or 3 outdoor lectures The three residents have the following schedule of marginal benefits, measured in dollars, for outddor lectures. # of lectures Russell Hume Kant 340 310 290 280 270 350 310 400 375 a. Find the optimal number of lectures. b. Majority voting is used to decide the number of outdoor lectures. If each voter is assigned a tak price o $300 per lecture, find the outcome of majority voting. Ella and Luke) who use the majority voting rule to decide consider a society with 3 people (Emma how much to spend on the military. There are 3 options; small budget, average budget and large budget. The three individuals rank the options from first choice to last choice as follows: Emma: Large, average, small Ella: small, average, large Luke: average, small, large a. Graph the preferences of Luke, Emma, and Ella in one graph. b. Will majority voting lead to a consistent choice? If so, what is that choice? Who is the median voter? Why? c. d. Suppose that Ella's preference ordering changes to: small, large, average. Are Ella's preferences in this case single or multiple peaked? Explain. e. Suppose Ella is the chairperson and sets the agenda for the order of voting on the amount to spend on the military, A vote will be taken on two of the choices, and the winner of that vote will vie with the third choice to determine the final choice, If Ella knows the preferences of Emma and Luke, how can she arrange the vote to guarantee her first choice wins? 3. The demand and supply for single malt scotch whiskey is P 400-8Q and P 200 + 2Q. a. Who bears the economic incidence of a $20 per unit tax on single malt scotch whiskey? b. How much revenue is raised by the tax? d. Draw a diagram shade in the area which represents the amount of the tax paid by sellers. e. Draw a diagram and shade in the area which represents the excess burden. f. Would you expect the excess burden of an excise tax on single malt scotch whiskey to be larger or smaller than a tax on all alcoholic beverages? Explain c. Find the excess burden of the tax. g. If supply is Q = 20 find the amount of revenue raised by the tax and the excess burden. Scholarville 3 residents: Kant, Hume, and Russell Outdoor summer philosophy lectures are a public good The cost of an outdoor philosophy lecture is constant and is equal to $900 per lecture A decision has to be made whether to have 1 or 2 or 3 outdoor lectures The three residents have the following schedule of marginal benefits, measured in dollars, for outddor lectures. # of lectures Russell Hume Kant 340 310 290 280 270 350 310 400 375 a. Find the optimal number of lectures. b. Majority voting is used to decide the number of outdoor lectures. If each voter is assigned a tak price o $300 per lecture, find the outcome of majority voting. Ella and Luke) who use the majority voting rule to decide consider a society with 3 people (Emma how much to spend on the military. There are 3 options; small budget, average budget and large budget. The three individuals rank the options from first choice to last choice as follows: Emma: Large, average, small Ella: small, average, large Luke: average, small, large a. Graph the preferences of Luke, Emma, and Ella in one graph. b. Will majority voting lead to a consistent choice? If so, what is that choice? Who is the median voter? Why? c. d. Suppose that Ella's preference ordering changes to: small, large, average. Are Ella's preferences in this case single or multiple peaked? Explain. e. Suppose Ella is the chairperson and sets the agenda for the order of voting on the amount to spend on the military, A vote will be taken on two of the choices, and the winner of that vote will vie with the third choice to determine the final choice, If Ella knows the preferences of Emma and Luke, how can she arrange the vote to guarantee her first choice wins? 3. The demand and supply for single malt scotch whiskey is P 400-8Q and P 200 + 2Q. a. Who bears the economic incidence of a $20 per unit tax on single malt scotch whiskey? b. How much revenue is raised by the tax? d. Draw a diagram shade in the area which represents the amount of the tax paid by sellers. e. Draw a diagram and shade in the area which represents the excess burden. f. Would you expect the excess burden of an excise tax on single malt scotch whiskey to be larger or smaller than a tax on all alcoholic beverages? Explain c. Find the excess burden of the tax. g. If supply is Q = 20 find the amount of revenue raised by the tax and the excess burden