7) Suppose that Katie and Kelly each expect to receive $500 worth of marginal benefits
from a proposed new recreation center, whereas Kerry expects to receive only $100 worth. If the
proposed tax levied on each for the center would be $450, a majority vote will
A) defeat this project and resources will be underallocated to it.
B) pass this project and resources will be efficiently allocated to it.
C) pass this project.
D) defeat this project.