(Answered) 1 the patrons at a local bar get rowdy on friday and

Engineering

1. The patrons at a local bar get rowdy on Friday and Saturday nights and wake up the 10 residents of the adjacent apartment building. The town economist surveyed the residents and found that each would be willing to pay $15 per night, on average, not to be woken.

a) The size of the negative externality on Friday and Saturday nights would be $___ per night.

b) The size of the negative externality over the course of the year (assume 50 weeks) would be $___ .

2. You currently earn $62,000 a year and you must pay $12,000 in federal income tax. You are thinking of installing solar panels and discover it will cost you $12,300 to get them installed. You learn about the Investment Tax Credit (ITC), also known as the federal solar tax credit, which allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes.

a) How much can you deduct from your taxes?

$___

b) What is your taxable liability now?

$___

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