1. Solve for the graph and aggregate demand of the city’s 30 residents as functions of the number of trees. Label intercepts slopes and intersection of two sections. 2. Assume that the city can obtain each tree at a constant marginal cost of 200. Solve the socially efficient numbers of trees for the city to purchase. Suppose that the city of San Francisco is considering a new project to plant trees in Golden GatePark. Based on some market research, they have determined that the city's 30 residents can bedivided into two groups with respect to their benefit from this public good. More specifically, theper-person demand for trees in group 1 and group 2 is given by:Group 1: QD = 80 - 2PGroup 2: QD = 20 - PSuppose that 10 of the city's residents are in Group 1 and the other 20 residents are in Group 2.

Aggregate demand is an economic measurement of the total amount of demand for all finished goods and…

Answered: 1. Solve for the graph and aggregate…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Solve for the graph and aggregate demand of the city’s 30 residents as functions of the number of trees. Label intercepts slopes and intersection of two sections. 2. Assume that the city can obtain each tree at a constant marginal cost of 200. Solve the socially efficient numbers of trees for the city to purchase.

Suppose that the city of San Francisco is considering a new project to plant trees in Golden Gate
Park. Based on some market research, they have determined that the city's 30 residents can be
divided into two groups with respect to their benefit from this public good. More specifically, the
per-person demand for trees in group 1 and group 2 is given by:
Group 1: QD = 80 - 2P
Group 2: QD = 20 - P
Suppose that 10 of the city's residents are in Group 1 and the other 20 residents are in Group 2.

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