Consider the town of Springfield with only three residents, Sophia, Amber, and Cedric. The three residents trying are to determine how large, in acres, they should build the public park. The table below shows each residents willingness to pay for each acre of the park.
Acres Sophia Amber Cedric
WTP (S) WTP (S) WTP (S)
1 10 24 6
2 8 18 5
3 6 14 4
4 3 8 3
5 1 6 2
6 0 4 1
7 0 2 0
a. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?
b. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents vote to determine the size of park to build, basing their decision solely on their own willingness to pay (and trying to maximize their own surplus, what is the largest park size for which the majority of residents would vote "yes?"
c. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. To maximize his own surplus, how many acres would Cedric like Springfield to build?
d. Suppose the cost to build the park is $24 per acre and that the residents have agreed to split the cost of building the park equally. If the residents decide to build a park with size equal to the number of acres that maximizes total surplus from the park, how much total surplus will Amber receive?