The city of Medianville has 100 citizens with income ranging from $20,000 to $70,000. The average income is $50,000 and the median income is $60,000. An individual’s demand for open space depends only on income, and the indi- vidual demand curve (marginal benefit curve) has a vertical intercept equal to 1/1,000 of income and a slope of -$0.50 per acre of open space. The marginal social cost of open space is $2,000 per acre. The city picks the quantity of open space with majority rule, using a head tax to pay for open space. a. The decisive voter—the one who will determine the election outcome—is the ____ voter, with income = ____ b. Use a graph like Figure 9–1 to show the situation for the decisive voter. The city will provide ____ acres of open space because … c. If the city switches to zoning to provide open space, without any compensa- tion to landowners, it will provide ____ acres of open space because . . .

QUESTION:

Voting for Open Space

The city of Medianville has 100 citizens with income ranging from $20,000 to $70,000. The average income is $50,000 and the median income is $60,000. An individual’s demand for open space depends only on income, and the individual demand curve (marginal benefit-curve) has a vertical intercept equal to 1/1,000 of income and a slope of -$0.50 per acre of open space. The marginal social cost of open space is $2,000 per acre. The city picks the quantity of open space with majority rule, using a head tax to pay for open space.

a). The decisive voter- the one who will determine the election outcome-is the ____ voter, with income = _____.

b). Use a graph like Figure 9-1 to show the situation for the decisive voter. The city will provide ______ acres of open space because …

c). If the city switches to zoning to provide open space, without any compensation to landowners, it will provide _____ acres of open space because . . .