Demand for public park for two groups of consumers

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Reference no: EM13800419

Suppose that demand for a public park for two groups of consumers (A and B) are given by:

QA=10-P,QB=6-2P, where Q is the number of the park used for each group per week.

a. Derive the aggregate demand for this public good.

b. If MC=7,how many times is this park used for each group? What price is each group willing to pay?

c. If each group is willing to use 5 times per week, what price is each group willing to pay?

Reference no: EM13800419

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