Question

Samantha. E en Jane and Dana are looking to construct a commun garden which he share and on to eth The a en ll cost hem 5 Ο Ο co uct Samantha and Ellen are both willing to pay $1,900 each, Jane is willing to pay $1,000 and Daria is only willing to pay S950. Daria and Jane earn half as much as Samantha and Ellen Answer the following questions: a. Assuming the community garden is a public good, should it be constructed? Type Y for Yes or N for No b. Samantha suggests they use a proportional taxation system, how much will Jane pay? S Answer to the nearest whole dollar (with no decimal places) c. Would the four agree to fund the garden using a proportional taxation system? Type Y for Yes or N for No

Answer 1

A. NO,  

as the usage of public good is general equal amongst all. And here as they are funding for it's construction not the govt, their contribution should have been equal.

B. $1400

If they use proportional tax system all will be paying an equal share. Hence jane will also be paying 5600/4= 1400

C. No,  

As their income is unequal.