Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang and Smith families value the road at $900 each and the Hudson family values the road at $700. The cost to pave the road is $2,400. Would a proportional tax or headcount tax policy be passed? O a. Only the headcount tax would pass. O b. Neither would pass. O c. Only the proportional tax would pass. O d. Yes, both would pass.

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Chapter1: Making Economics Decisions
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Three neighbors share a private dirt road off the main highway that leads to their homes. The Huang and Smith families value the road at $900 each and the Hudson family values the road at $700. The cost to pave the road is $2,400. Would a proportional tax or headcount tax policy be passed?


O a. Only the headcount tax would pass.
O b. Neither would pass.
O c. Only the proportional tax would pass.
O d. Yes, both would pass. 

 

Note: correct answer is option a) how?

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