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4. Labatt Breweries Alberta is located in Edmonton. Assume that because of the presence of the brewery and the large numbers of vehicles in the

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4. Labatt Breweries Alberta is located in Edmonton. Assume that because of the presence of the brewery and the large numbers of vehicles in the city the air quality in Edmonton is bad. As a result, people have to purchase air purifiers. On the other hand, in a city like Camrose, the air quality is good resulting in a lower demand for air purifiers. The demand for air purifiers in the two cities is given by: Demand for air purifier in Edmonton: P = 250 - 0.10Q (where Q is the number of air purifiers in '000s) Demand for air purifier in Camrose: P = 150 - 0.12Q (where Q is the number of air purifiers in '000s) Page 1 of 2 (i) On the same graph, draw the demand curve for air purifiers in Edmonton and Camrose. (4 marks) (1i) Suppose the city of Edmonton takes steps to improve air quality in Edmonton to levels reported in Camrose. If price of air purifiers is $60, calculate the benefits of air quality improvement (note: these benefits accrue because of lower demand for air purifiers in Edmonton resulting from better air quality). (6 marks)

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