2. A town divided into two districts, A and B, is proposing to build a new filtration system to remove some contaminant from its drinking water. The town estimates the demand by residents of the two districts to be represented by the following functions: MWTPA = 10-0.120 and MWTPB = 15- .180B, where Q is the % of the contaminant that is expected to be filtered by the system. The supply function is estimated to be MC = 4 + 0.75Q. a) What is the aggregate demand (MWTP) function for this public good? b) Graph the aggregate MWTP and MC functions equations in the same diagram, where % filtration of the contaminant is measured on the x axis. c) What is the socially efficient % filtration of the contaminant? NOTE: Do not change % into decimal form for the calculation d) What is the TOTAL cost of achieving the optimal percent filtration? What TOTAL amount are residents of EACH district willing to pay for the socially efficient % filtration? Is total willingness to pay by residents of both districts considered together enough to cover total cost of supplying it? e) As long as total WTP is sufficient to cover total cost, it would make sense for a private company instead of government to supply the filtration system. Do you agree with this statement? Explain