Question 1: |Consider an economy of 56 people who consume a private good (money, m] and a public good [parks. p}. There are two types of people {type 1 and type 2}. Each type 1 person's marginal rate of substitution ii.e. willingness to pay or the public good by giving up some private good} is MRSlpm= 4D-2p, and each type 2 person's marginal rate of substitution is MRSme = BID4p. There are 20 type 1 people and 3D type 2 people. The economy wide marginal rate of transformation is MRTW = 188:] + 80p. a} Suppose that the current allocation is such that p = 2 and each person has 560. Is that allocation efficient? If not, then should more or less parks be provided? If more parks are provided, then propose a costsharing arrangement that provides one more park and makes everyone at least as well off as before. bi What is the socially optimal amount of parks to be provided in this economy