Suppose residents of Toadhop live on the Quabache River, a river ...

[ENagel]

Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100  P Type B Demand QD = 50  P Where Q measures the quality of flood control. If the price of a unit of flood control is 100,000 and the citizens of Toadhop gather for a townhall meeting to find the socially optimal level of flood control, and they are successful, how much will each type B individual contribute in total?
 a. 1875
  b. 1500
  c. 875
  d. 625

Question 2

Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100  P Type B Demand QD = 50  P Where Q measures the quality of flood control. If the price of a unit of flood control is 100000 and the citizens of Toadhop gather for a townhall meeting to find the socially optimal level of flood control, and they are successful, how much will each type A individual contribute in total?
 a. 1875
  b. 1500
  c. 875
  d. 625

[jessicaduplan]

Answer to Question 1

d

Answer to Question 2

a

[ENagel]

YES! Correct, THANKS for helping me on my review

[fatboyy09]

Thanks for the timely response, appreciate it