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.