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If you can provide your work/explanation, Thank you! 2. Consider a city with three consumers: 1,2, and 3. The city provides park land for the

If you can provide your work/explanation, Thank you!

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2. Consider a city with three consumers: 1,2, and 3. The city provides park land for the enjoyment of its residents. Parks are a public good, and the amount of park land (\"inch is measured in acres} is denoted by z. The demands for park land for the three consumers are as follows: D1=40z D2=30z D3=20z These formulas give the height of each consum1er's demand curve at a given level of z. Note that each demand curve cuts the horizontal axis, eventually becoming negative. For the problem to work out right, you must use this feature of the curves in deriving D2. [11 other wards, don't assume that the curves become horizontal once they hit the axis. a) b) d) The height of the DE curve at a m'ven z is just the sum of the heights of the individual demands at that 2. Using this fact, compute the expression that gives the height up to the D: curve at each 2. The cost of park land per acre, denoted c, is 9 (like the demand intercepts, you can think of this cost as measured in thousands of dollars). Given the cost of park land, compute the socially optimal number of acres of park land in the city. Compute the level of social surplus at the optimal 2. Remember that this is just the area of a surplus triangle. Suppose there are two other communities, each with 3 consumers, just like the given community. Compute total social surplus in the three communities, assuming each chooses the same amount of park acres as the rst community. e) Now suppose the population is reorganized into 3 homogeneous communities. The rst has 3 type-1 consumers (i.e., high demanders). The second has 3 type-2 consumers (medium demanders), and the third has 3 type-3 consumers (low demanders). Repeat parts (a), (h), and (c) for each community, nding the D2 curve, the optimal number of park acres, and social surplus in each community. Compute total social surplus by summing the social surplus results 'om part (e) across communities. How does the answer compare to social surplus from part ((1)? Based on your answer, are homogeneous communities superior to the original mixed conummities

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