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The city of Vancouver is considering building some more trails through Stanley Park. The extra kilometers of new trails would provide more opportunities for people
The city of Vancouver is considering building some more trails through Stanley Park. The extra kilometers of new trails would provide more opportunities for people to walk or bike, however there would also be more litter. Aggregate demand for kilometers of trails is currently P = 6910 - 200Q and the current quantity is 17km of trails. If the extra trails are built, aggregate demand will increase to P = 8790 - 180Q and the new quantity will be 26km of trails. Using the trails is free. Marginal damage per kilogram of litter is given by MD = 1.9E. The amount of litter is estimated to increase from the current level of 71kg to 107kg. Calculate the net benefit of building the extra trails
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