Excercise 3 1

Carlos Graterol September 21, 2008 Econ 4554 Exercise 3 1.) Huey = 17 Hours Dewey = 11 Hours Lewey = 2 Hours B.) 11 Hours 2.) 30 C.) It is not really that close, off by 19 Hours 3.) Lindahl Equilibrium for Huey – 16.5 Hours Dewey – 10.8 Hours Lewey – 1.5 Hours 4.) 18 Hours B.) 11 Hours C.) It Doesn’t D.) It wouldn’t unless he becomes the median voter by changing his demand curve.

5.)

C.) Because 11 is the efficient Quantity for Dewey who is the Median voter, he will pick any quantity up to 11. Anything higher and he will not vote for it.