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Q. Consider a water project in a region which supplies water to both industrial also agricultural uses. Their demand functions for water are particularly:Qind = 6 - PQag = 12 - P
The water project has a capacity limit of S = 18 also the marginal cost of water supply isconstant at 1.
Illustrate what is the efficient price of water? Illustrate what are the quantities of water allocated to agricultural also industrial use?
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