Suppose that Jill and Joe are the only two people in the small town of Andover. Andover has land available to build a park of no more than 9 acres. Jill and Joe's demand schedules for the park are as follows:
Joe
Price per Acre ___________ Number of Acres
$10 ..................................... 0
9 ........................................ 1
8 ........................................ 2
7 ........................................ 3
6 ........................................ 4
5 ........................................ 5
4 ........................................ 6
3 ........................................ 7
2 ........................................ 8
1 ........................................ 9
Jill
Price per Acre ________________ Number of Acres
$15 .................................. 0
14 .................................... 1
13 ................................... 2
12 ................................... 3
11 ................................... 4
10 .................................... 5
9 .................................... 6
8 .................................... 7
7 .................................... 8
6 .................................... 9
The supply curve is as follows:
Price per Acre _______________ Number of Acres
$11 ...................................... 1
13 ....................................... 2
15 ........................................ 3
17 ....................................... 4
19 ....................................... 5
21 ........................................ 6
23 ....................................... 7
25 ...................................... 8
27 ...................................... 9
a. Draw a graph showing the optimal size of the park. Be sure to label the curves on the graph.
b. Briefly explain why a park of 2 acres is not optimal?