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When the Red River floods, the Prescotts?who live on the east side of the river?and the Walkers?who live on the west side of the river?suffer flood damages. A project to deepen the river by dredging would reduce the damages for both families.The deeper the dredging, the less the damages.The marginal benefits to each family are given in the table. Plot each family's demand curve for the project. Calculate and plot the market demand curve for the project.
Depth in feet Prescotts Walkers
0
-
10
$10
$6
20
8
3
30
6
40
4
50
2
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