Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1,000 (type A) people who value flood control more than the 1,000 (type B) people. TypeADemandQD =100−P TypeBDemandQD =50−P where Q measures the quality of flood control. Refer to Scenario 2. If the price of a unit of flood control is $100,000 and the citizens of Toadhop did not work together, the amount of flood control purchased would be (a) 0. (b) 10. (c) 25. (d) 70. Refer to Scenario 2. 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 per unit of flood control? (a) $25 (b) $50 (c) $75 (d) $100 Refer to Scenario 2. 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 A individual contribute in total? (a) $1,875 (b) $1,500 (c) $875 (d) $625
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1,000 (type A) people who value flood control more than the 1,000 (type B) people.
TypeADemandQD =100−P TypeBDemandQD =50−P
where Q measures the quality of flood control.
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Refer to Scenario 2. If the
price of a unit of flood control is $100,000 and the citizens of Toadhopdid not work together, the amount of flood control purchased would be
(a) 0. (b) 10. (c) 25. (d) 70.
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Refer to Scenario 2. 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 per unit of flood control?
(a) $25 (b) $50 (c) $75
(d) $100
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Refer to Scenario 2. 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 A individual contribute in total?
(a) $1,875 (b) $1,500
(c) $875 (d) $625
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