Hi! Need help with 3 Free Response Questions. Here are they:

23. Markets for PUN lic goods generally experience problems 2. Suppose Dan and Ali are the only residents of Parklar Their town can have up to 10 park benches, which are onsun on. 4 ma ver. nonrival and nonexcludable. Dan would pay up to high $900 for the first bench, $800 for the second bench, fig Jal ernal and $100 less for each additional bench, down to $0 Its for the tenth bench. Ali would pay up to $300 for each bench up to 10. .A 1 SU ial ar ith a a. Are park benches in Parkland a private good, a ST public good, or a common resource? Explain. al ext b. Draw and label the individual demand curves for al exp Dan and Ali. in TV nd the c. Draw and label the social marginal benefit curve fo e by benches in Parkland. the he d. If benches cost $950 each, what is the socially soo optimal quantity of benches? e. Why is it unlikely that a private bench market will e sell the socially optimal quantity of benches? f. What is a common solution for achieving the . are above th arket c socially optimal quantity in situations like this? c. never deviate . om the mur Urket equ librium wage. (7 points) d. result in lower levels of worker produ tivity. e. necessitate greater amounts of worker supervision. 3. The country of Nina has a Gini coefficient of 0. The country of Pinta has a Gini coefficient of 1. Free-Response Questions a. On a correctly labeled graph, draw the Lorenz curve for Nina. (You won't have to draw a Lorenz curve 1. Suppose there are 100 residents on the island of on the AP exam, but try this one; it's simple and Sunshine. Whenever someone purchases a palm tree instructive.) to plant on the island, everyone on the island receives b. On your graph, draw any one point that lies on the the same benefits from the tree, which include beauty, Lorenz curve for Pinta and label it X. shade, and erosion control. The table below shows the c. The country of Santa Maria has a Gini coefficient total social cost (which is also the total private cost) and of 0.5, and wants to enact tax legislation to move the total private benefit received per resident depending Lorenz curve closer to that of Nina. Should Santa on the quantity of palm trees purchased. Use this Maria adopt a tax that is regressive, progressive, or information to answer the questions that follow. proportional? Explain. (5 points) Quantity of Total social cost Total private palm trees (total private cost) benefit per resident 0 SO $0 200 8 2 400 12 600 14 800 15 a. Does the purchase of palm trees create a negative consumption externality, a positive consumption externality, or no externality? Explain. b. Draw a graph that depicts the marginal social cost and the marginal social benefit of palm trees. c. What quantity of palm trees would be purchased if they were sold in a private market? Explain. d. What is the socially optimal quantity of palm trees? Explain. e. In this situation, are palm trees a private good, a public good, or a common resource? f. What could be an appropriate governmental policy response to this situation? Explain. (10 points) 814 Micro . Unit 6 Market Failure and the Role of Government