Author Question: Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there ... (Read 145 times)

ENagel · **on:** Jul 1, 2018

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