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A township buys a new asphalt road paver. The paver costs $50,500?

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Final answer:

The scenario demonstrates a township buying a new asphalt road paver and the theoretical willingness of 10,000 townspeople to spend collectively up to $3 million to ensure the passage of a tax that would benefit them each by $300.

Step-by-step explanation:

The subject matter pertains to a township's decision to purchase a new asphalt road paver, worth $50,500, and the potential economics behind the decision for the townspeople to support a tax that would fund such a purchase. This scenario highlights a common theme in public finance and economics where the collective benefit to the townspeople theoretically justifies a significant investment. For example, if there are 10,000 townspeople who each stand to benefit by $300 if a tax to fund such purchases passes, they would theoretically be willing to spend up to $3 million to ensure its passage, although in practice, the actual amount they choose to spend might be less due to the lack of guarantees on the tax's success.

User Daniel Richardson
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