An inherent weakness of ________ is the absence of the profit incentive

Suppose three neighbors must vote on the installation of a traffic light that costs $210. The cost of the light will be shared by all three

Voter A values the light at $50; voter B values the light at $50; and voter C (who drives the most) values the light at $200. If the voting rule is that the majority wins, does the light get purchased? Is it efficient to purchase the light?

The income elasticity of demand for all goods taken together must be

A) zero. B) -1. C) +1. D) between 0 and 1.