Suppose residents of Toadhop live on the Quabache River,a river prone to flooding.Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people.Type A Demand Q_D = 100 - P
Type B Demand Q_D = 50 - P
Where Q measures the quality of flood control.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

Question

Quizplus · Accepted Answer

At a price of $100,000, the quantity demanded by type A residents is: Q_D = 100 - 100,000 = -99,900 This means that type A residents are not willing to purchase any units of flood control at this price. Similarly, the quantity demanded by type B residents is: Q_D = 50 - 100,000 = -99,950 This means that type B residents are also not willing to purchase any units of flood control at this price. Therefore, if the citizens of Toadhop did not work together, the amount of flood control purchased would be 0.

Suppose Residents of Toadhop Live on the Quabache River,a River