4b. The Parking Services Department on a small college campus has control of 1000 Student parking spaces. The annual demand for these spaces, as a function of the Price, p, for a parking permit, is QD = 2000 - 20p. i. If Parking Services wants to set a Pareto-efficient price but believes a parking space is a rival good, what price will it set? ii. Following a survey, Parking Services determines that a parking space is a non- rival good with the number of times it is shared, a, a function of the price, a = 20 -1/2p. With this information, what is the profit-maximizing price of a permit, and how many students will share a parking space?

4b. The Parking Services Department on a small college campus has control of 1000 Student parking spaces. The annual demand for these spaces, as a function of the Price, p, for a parking permit, is QD = 2000 - 20p. i. If Parking Services wants to set a Pareto-efficient price but believes a parking space is a rival good, what price will it set? ii. Following a survey, Parking Services determines that a parking space is a non- rival good with the number of times it is shared, a, a function of the price, a = 20 -1/2p. With this information, what is the profit-maximizing price of a permit, and how many students will share a parking space?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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