Suppose that we know the demand for schooling in Scholarville is given by the equation p = 7,500 - 75q, where p is price per pupil and q is the quantity of schooling measured in hours per day per pupil.
a. At what price will voters desire a seven-hour school day?
b. Suppose that the price is given as computed in part (a) but the School Board wants an eight-hour school day. How can the Board exercise agenda control in order to obtain a favorable vote on an eight-hour day proposal? Explain.
c. What is the welfare loss due to the agenda control?