I ONLY NEED PART D AND E PLEASE , not a, b, c

4. Suppose that Dryville, a town of 50,000 persons, does not currently have a public swimming pool, but, encouraged by an offer from the state government to pay 50% of the construction costs, is considering building one. Further suppose that you have been selected by Dryville's mayor to analyze the benefits and costs from building such a pool. a. Although Dryville has no experience with a public pool, assume that you have collected data from several towns that are very similar to Dryville and that do have a public swimming pool. For each town, you know what fee it charged last summer per visit and how many visits it had. The data collected for each town appear below; TOWN FEE NO. OF VISITS $1.00 175,000 B $2.00 125,000 $0.50 200,000 Using a diagram, indicate how you might utilize these data to predict the net benefits received by users of the pool if Dryville was to charge a fee of S0.50 to swim in the pool. NOTE: You need not compute this amount; just indicate clearly the area on the graph that represents the net benefit amount.] b. By how much would the benefits received by swimmers change if Dryville was to increase the fee from $0.50 to $1.00. [NOTE: This time compute the actual dollar value.] A c. Suppose that the marginal costs of operating the pool after it is built is constant at $0.50 (i... the marginal cost curve is horizonal), but Dryville increases the fee from $0.50 to $1.00. What are the net social gains or losses resulting from this increase. [NOTE: Again, compute the actual dollar value] d. Suppose Dryville purchases the land needed for the swimming pool at the market price from private developers who would have otherwise have sold the land to families who would have built houses for themselves on it. Assume that a fixed quantity of land was needed and that this land was vacant when purchased. Does the dollar amount that Dryville pays for the land adequately measure the land's social value? Is shadow pricing needed to measure the social value of the land? Please explain. [In answering this question, please be as specific as possible, using a diagram if you can.) e. Suppose that hiring lifeguards for the swimming pool would reduce the number of unemployed teenagers found in Dryville each summer. How should the social cost of employing these persons be measured in the study? [In answering this question, please be as specific as possible, using a diagram if you can and compute the monetary value. Assume the 500 lifeguard hours will be hired, wage of the lifeguards are $10 per hour and the average reservation wages are 56 per hour] 4. Suppose that Dryville, a town of 50,000 persons, does not currently have a public swimming pool, but, encouraged by an offer from the state government to pay 50% of the construction costs, is considering building one. Further suppose that you have been selected by Dryville's mayor to analyze the benefits and costs from building such a pool. a. Although Dryville has no experience with a public pool, assume that you have collected data from several towns that are very similar to Dryville and that do have a public swimming pool. For each town, you know what fee it charged last summer per visit and how many visits it had. The data collected for each town appear below; TOWN FEE NO. OF VISITS $1.00 175,000 B $2.00 125,000 $0.50 200,000 Using a diagram, indicate how you might utilize these data to predict the net benefits received by users of the pool if Dryville was to charge a fee of S0.50 to swim in the pool. NOTE: You need not compute this amount; just indicate clearly the area on the graph that represents the net benefit amount.] b. By how much would the benefits received by swimmers change if Dryville was to increase the fee from $0.50 to $1.00. [NOTE: This time compute the actual dollar value.] A c. Suppose that the marginal costs of operating the pool after it is built is constant at $0.50 (i... the marginal cost curve is horizonal), but Dryville increases the fee from $0.50 to $1.00. What are the net social gains or losses resulting from this increase. [NOTE: Again, compute the actual dollar value] d. Suppose Dryville purchases the land needed for the swimming pool at the market price from private developers who would have otherwise have sold the land to families who would have built houses for themselves on it. Assume that a fixed quantity of land was needed and that this land was vacant when purchased. Does the dollar amount that Dryville pays for the land adequately measure the land's social value? Is shadow pricing needed to measure the social value of the land? Please explain. [In answering this question, please be as specific as possible, using a diagram if you can.) e. Suppose that hiring lifeguards for the swimming pool would reduce the number of unemployed teenagers found in Dryville each summer. How should the social cost of employing these persons be measured in the study? [In answering this question, please be as specific as possible, using a diagram if you can and compute the monetary value. Assume the 500 lifeguard hours will be hired, wage of the lifeguards are $10 per hour and the average reservation wages are 56 per hour]