7. Monthly water use in the City of Utility is 32 million gallons, and the average household is paying $3 per thousand gallons. If the price elasticity of demand is –0.75, what is a good estimate of the aggregate water demand function in Utility? What units do the variables of your function utilize? Suppose that the rate is set at $3 because each and every 1000 gallons delivered to a household costs Utility exactly $3 to process and deliver, excluding any costs of natural water. What is the town's marginal net benefit function?

7. Monthly water use in the City of Utility is 32 million gallons, and the average household is paying $3 per thousand gallons. If the price elasticity of demand is –0.75, what is a good estimate of the aggregate water demand function in Utility? What units do the variables of your function utilize? Suppose that the rate is set at $3 because each and every 1000 gallons delivered to a household costs Utility exactly $3 to process and deliver, excluding any costs of natural water. What is the town's marginal net benefit function?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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