both communities to get overall social surplus in the homogeneous case. Now suppose the economy is organized into one mixed community of population 10, containing 5 low demanders and 5 high demanders. d) g) h) Using the results of part (a), compute the socially-optimal 2 level in the mixed community. Also compute the level of social surplus in the mixed community, which gives the overall surplus level since this is only community. Comparing your answers to parts (c) and (d), decide whether the mixed or homogeneous arrangement is superior. Given an intuitive explanation for your conclusion. Now suppose that the demand rises for the low demanders, with D1 = 10 2 giving the demand curve. Repeat part (b) using this new demand curve. Using your result along with part (c), recompute overall social surplus in the homogeneous case. Using the assumptions of part (f), compute the socially-optimal 2 level in the mixed community of size 10, and compute social surplus. Comparing your answers to parts (i) and (g), decide whether the mixed or homogeneous arrangement is superior. Give a thorough intuitive explanation of why different conclusions are reached in parts (6) and (h)