​​Message : An implicit assumption in the assignment is that the many towns referred to in part (c) -- call them "reference towns" -- all have marginal social cost = $3000 / acre and all have 150 residents. I''m making that assumption explicit here. Also you''ve probably already figured out it makes no difference whether these reference towns have a head tax or a property tax so I''m not giving up much by confirming that. It''s only in the model town that a head tax and a property tax yield different results.

​​It''s convenient to label houses as either big (with value Vb = $1 million in parts a and b) or small (with value Vs = $500,000 in parts a and b).

​​To solve the original version of part (c) you will need to develop four equations in four unknowns: big house value Vb; small house value Vs; equilibrium park consumption A and the property tax rate r​. ​​