Problem $09-06($algo$)$

Refer to the News Wire to answer two questions.

NEWS WIRE: PUBLIC GOODS

Israel's "Iron Dome" Works!

Israel's Iron Dome is an air defense system designed to intercept and destroy incoming missiles and mortars fired across the border by Hamas and other Palestinian factions. It works. Israel's Defense Minister claims the Iron Dome has been $90$ percent effective in shielding population centers. From $2014$ until $2021,$ more than $2,400$ projectiles were intercepted, most of them launched from the Gaza Strip by militants. In $2021$ Israel upgraded the system to work on ships as well as land.

Source: Media reports, February $2021.$

Suppose the annual cost of the Iron Dome is $$500$ million. What is the opportunity cost of this defense spending in terms of private housing assuming a new home can be constructed for

Instructions: Round your responses to the nearest whole number.

a$.$ $$90,000?$

houses per year

b$.$ $$120,000?$

houses per year