b) Suppose that there are only three people that live in a (very) small town: Eric,...

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b) Suppose that there are only three people that live in a (very) small town: Eric, Greg, and Katie. The town is thinking of building a park which you can assume is a public good for these three individuals in the town. Based on the individuals' demand schedules for the park, which are given below, calculate and graph the social marginal benefit curve for the park. Eric's Demand Price per Acre $14 $13 $12 $11 $10 $9 $8 $7 Number of Acres 1 2 3 4 5 6 7 8 Greg's Demand Price per Acre $11 $10 $9 $8 $7 $6 $5 $4 Number of Acres 1 2 3 4 5 6 7 8 Katie's Demand Price per Acre $18 $17 $16 $15 $14 $13 $12 $11 Number of Acres 1 2 3 4 5 6 7 8 b) Suppose that there are only three people that live in a (very) small town: Eric, Greg, and Katie. The town is thinking of building a park which you can assume is a public good for these three individuals in the town. Based on the individuals' demand schedules for the park, which are given below, calculate and graph the social marginal benefit curve for the park. Eric's Demand Price per Acre $14 $13 $12 $11 $10 $9 $8 $7 Number of Acres 1 2 3 4 5 6 7 8 Greg's Demand Price per Acre $11 $10 $9 $8 $7 $6 $5 $4 Number of Acres 1 2 3 4 5 6 7 8 Katie's Demand Price per Acre $18 $17 $16 $15 $14 $13 $12 $11 Number of Acres 1 2 3 4 5 6 7 8

Answer rating: 100% (QA)

To calculate the social marginal benefit curve for the park we need to combine the demand schedules of Eric Greg and Katie We can do this by calculati... View the full answer