Suppose certain fireworks are legal in a residential area on the Fourth of July. The fireworks have
Question:
a. If a quota of 30 fireworks per person is imposed, what is each individual's willingness-to-pay for their last firework?
b. If the government wants no more than 60 fireworks total to be purchased, what amount of tax should be imposed? How many fireworks will Jenny and Salo purchase under this tax?
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