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10) Vanh and Chengxi live in a small community and for simplicity, assume they are the only ones in the community. There are a number
10) Vanh and Chengxi live in a small community and for simplicity, assume they are the only ones in the community. There are a number of deer in their community and the deer spread ticks. Vanh and Chengxi each have a demand for tick control, given by the following equations. Vanh's demand: qy = 250 - p Chengxi's demand: qc = 150 - p Mosquito control can be provided at a constant marginal cost of $190. a) Calculate the inverse demand curves for Vanh and Chengxi. Why do these describe their marginal private benet? b) Draw out the inverse demand curves for Vanh and Chengxi and the marginal cost curve c) In the private market equilibrium, what are the quanties demanded of tick control by Vanh and Chengxi? d) The government of their state declares that tick control is a public good. Explain why that would be the case. e) The government decides that since tick control is a public good, it will provide the service throughout the state. If they know Vanh and Chengxi's demand curves, how much should they provide
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