Let us suppose that there are 200 people living in a community based at Mount Keira. The community problem that persists is the conservation of the forests and prevent excessive conversion of forests landscapes into residential use. Each community member faces an identical inverse demand function for forests conservation which is P = 20 - 2q where q is the number of forests conserved (expressed in terms of m²). P is the price that an individual community member is willing to pay for preserving q m² of forests.

a) How much forests would be conserved in an efficient allocation if the marginal cost of forests preservation is $1,000 per m².

b) Calculate the size of the economic surplus based on your understanding of static efficiency