P2: The government is considering whether to build barriers along a river that would reduce the risk of flooding for the citizens living by the river. Three citizens: Alan, Brad, and Carlos, will vote yes or no on the project. If the majority votes yes, the barriers will be built, but if the majority votes no the project will not go ahead. Suppose the total cost of the project is $1,500, so if the project is undertaken everyone will end up paying $500. The following sets of numbers represent the three citizens' private willingness to pay (how much utility they would get from the barrier, expressed in terms of dollars), in three different scenarios. a) Alan: $400, Brad: $600, Carlos:
P2: The government is considering whether to build barriers along a river that would reduce the risk of flooding for the citizens living by the river. Three citizens: Alan, Brad, and Carlos, will vote yes or no on the project. If the majority votes yes, the barriers will be built, but if the majority votes no the project will not go ahead. Suppose the total cost of the project is $1,500, so if the project is undertaken everyone will end up paying $500. The following sets of numbers represent the three citizens' private willingness to pay (how much utility they would get from the barrier, expressed in terms of dollars), in three different scenarios. a) Alan: $400, Brad: $600, Carlos:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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P2: The government is considering whether to build barriers along a river that would reduce the risk of flooding for the citizens living by the river. Three citizens: Alan, Brad, and Carlos, will vote yes or no on the project. If the majority votes yes, the barriers will be built, but if the majority votes no the project will not go ahead. Suppose the total cost of the project is $1,500, so if the project is undertaken everyone will end up paying $500. The following sets of numbers represent the three citizens' private
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