Question: (Total Points 20} A county is trying to resolve a problem associated with a new water filtration system for the public water supply to two


(Total Points 20} A county is trying to resolve a problem associated with a new water filtration system for the public water supply to two towns. The voting results are aggregated at the town level and represents the marginal willingness to pay of each town resident. QA = 14-0 IDPA and QB = 160 ZOPB, where Q is the expected percent of copper to be filtered by the system, and P is the price. a. Based on these estimates, determine the market demand for this public good. b. Draw the market demand for the copper filtration system and explain the shape of the market demand curve. If there is a kink in the market demand curve, explain the source of this kink. c. If the market supply were P = 6 + 0.150, what would be the equilibrium price and quantity for the town. d. Town A is really interested in buying this water filtration system. Wl'lat happens if they decide to install it on their own? Do they achieve a better outcome than the one found in c? Explain
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