A. Calculate the land value per hectare in farming (W, Y) and in housing (X, Z) from the farmer's and society's perspective. (1.25 points) What is the economically optimal land use from the farmer's perspective? society's? Why? (1.25 points) Provide three examples from class lecture of positive externalities to society from low density (recreational, agricultural) land use relative to private benefits of high density (e.g. residential, commercial) land use. (1.25 points) What are at least 3 potential policy alternatives available to 'society' (local government or civic organization) to achieve the societal optimum and who gains/loses by how much by employing these options? (1.25 points) Land use Farmer Society Annual land rents Ag 500 1500 Housing 1000 1000 Land price per hectare (r=0.10) Ag Wa Y= Z- Housing