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Fireworks as Public Goods. A three-person city is considering a fireworks display. Bertha is willing to pay $100 for the proposed fireworks display, Marian is willing to pay $30, and Sam is willing to pay $20. The cost of the fireworks display is $120.
a. Will any single citizen provide the display on his or her own?
b. If the cost of the fireworks display is divided equally among the citizens, will a majority vote be in favor of the display?
c. Describe a transaction that would benefit all three citizens.
The federal government estimated that the elasticity of demand for cigarettes among teenagers is equal to 2. If they want to reduce smoking by 50% among this group and the p
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