Table 11-1
Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The following table shows each resident's willingness to pay for each acre of the park.

-Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the largest park size for which the majority of residents would vote "yes?"
A)0 acres
B)1 acre
C)2 acres
D)3 acres

Question

Table 11-1
Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents are trying to determine how large, in acres, they should build the public park. The following table shows each resident's willingness to pay for each acre of the park.
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-Refer to Table 11-1. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus), what is the largest park size for which the majority of residents would vote "yes?"
A)0 acres 
B)1 acre 
C)2 acres 
D)3 acres

Quizplus · Accepted Answer

If the cost is $24 per acre and split equally among residents, each resident pays $8 per acre. The majority will vote for the largest park size where their willingness to pay is at least $8. If 2 acres is the largest size where the majority's willingness to pay is at least $8, they will vote "yes" for 2 acres.

Table 11-1 Consider the Town of Springfield with Only Three Residents, Sophia