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5. The community of East Nashville is home to 10000 people. These people do two things. They go to brunch and they take their dogs
5. The community of East Nashville is home to 10000 people. These people do two things. They go to brunch and they take their dogs to a dog park. Each has income of 100000. Their utiiity functions are composed of how much brunch they can buy (31- and how nice the dog park is D. Their utility functions are u (bi, D) = bi + 10000511 (D). How nice the dog park is D is determined by the sum of money contributions of each individual to the park. These are given by di and D = Zruuuu (di). Assume that these consumers choose di and spend the 1:] rest of their money on brunch. A) Write each individual's utility in terms of only (11- and D4 = D di. B) How much does each individual contribute to the dog park in a symmetric Nash equilibrium? C) If the government wants to force individuals to contribute 5! instead of having them choose what to contribute, what should they choose to maximize joint utility
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