Alfie, Bill, and Coco each value police protection differently. Alfie’s demand for the public good is Q = 55 - 5P, Bill’s demand is Q = 80 - 4P, and Coco’s demand is Q = 100 - 10P. The marginal cost of providing police protection is $13.5.
a. What is the socially optimal level of police provision?
b. If each voter pays one-third of the total bill for police protection, how much will each voter wish the community to buy?
c. If the median voter wins, how much will the community buy?
d. If the median voter wins, will the allocation be efficient? Over-provided or under-provided? Explain.

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

The larger the investment you make, the easier it will be to: get money from other sources. guarantee cash flow. buy insurance. streamline your products.

Determine if the following statements are true or false. an increase in government spending can crowd out private investment. an improvement in the budget balance increases the demand for financial capital. an increase in private consumption may crowd out private investment. lower interest rates can lead to private investment being crowded out. a trade balance in sur+ increases the supply of financial capital. if private savings is equal to private investment, then there is neither a budget sur+ nor a budget deficit.