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Welcome to the Q&A for ECN/APEC 2010, where you can ask questions and receive answers from your fellow students, the TA, and your professor.

Please only ask questions about the material for the course. Try to create discussions about the material we see in class, instead of just thinking of economics in general (this is an introduction to microeconomics class, not a policy or government class).

For questions and discussions about course organization or other course related topics, come see us after class or during office hours.

Feel free to discuss quiz questions on the Q&A, but do not provide direct answers to quiz questions before the quiz's due date.

On quiz 15, I don't know how to do this question.

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Consider a village with 10 inhabitants. The cost of public lighting in the village is $70 a month. The willingness to pay of the 10 inhabitants for public lighting is described in the following table:

Suppose that, in order to fund public lighting, the village council imposes a tax of $7 on each inhabitant.

Which of the following statement is true?

Under the tax, inhabitant number 2 is a forced rider.

Under the tax, inhabitant number 2 is a free rider.

The (total) consumer surplus of the 10 inhabitants is higher when public lighting is provided and funded through the tax, than when public lighting is not provided and no-one has to pay the tax.

The (total) consumer surplus of the 10 inhabitants is lower when public lighting is provided and funded through the tax, than when public lighting is not provided and no-one has to pay the tax.

asked Apr 29 by canvas-2beaa592712eb (175 points)

1 Answer

–2 votes

The (total) consumer surplus of the 10 inhabitants is lower when public lighting is provided and funded through the tax, than when public lighting is not provided and no-one has to pay the tax.

answered Apr 30 by canvas-e25408d8f8d15 (216 points)
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