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Assume a city of 1 million people, 75% of who are willing to pay $1 maximum (each) to clean up pollution. The rest of the population is willing to pay $100 each to clean up pollution. Clean-up costs $3 million. It has been proposed that each person be taxed equally to pay for the pollution clean-up.
a) Will such regulation pass a majority rule?
b) Is it desirable from the point of view of the Pareto criterion?
c) Is it a good idea using the compensation principle?
d) Which social choice mechanism do you think is best on intuitive grounds and why?
The following details are available for company Z · Share price at the beginning of the year £3.87 Share price at the end of the year £4.23 Dividend proposed and pa
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Current traffic pattern given as below. ZONE DESTINATION ZONE ORIGIN 1 2 3
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