a$.$ If the town decided to use Lindahl pricing $($a tax based on a Lindahl equilibrium$)$ to collect enough money to provide the socially efficient quantity of acres, what would be each persons tax share? 

 

 b$.$ Suppose instead of a Lindahl tax the town decides to tax each person equally and then put the tax up for a vote. What tax would each person in the community need to pay to have enough tax revenue to pay for the socially efficient number of acres? 

c.  If the tax you calculated was put into a majority rule referendum vote, would the playground be built?

 

Answer rating: 100% (QA)

a With Lindahl pricing each person would pay a tax based on their marginal valuation of the park The ... View the full answer