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Three ducks, Huey, Dewey, and Louie, are squawking about how big of a pond they should purchase together. Huey and Louie's individual demand curves are
Three ducks, Huey, Dewey, and Louie, are squawking about how big of a pond they should purchase together. Huey and Louie's individual demand curves are given by: Huey: P = 23.1 - 3Q Louie: P = 46.2 - 6Q The price per square metre of pond is $19.8, and the socially optimal size of the duck pond is 6.6 square metres. Assume that the aggregate demand is a straight line: this implies that the individual demand curves of the 3 ducks intercept the x- axis in the same point. If the ducks choose the pond size independently, how many square metres will the pond be? O a. 7.70 O b. The pond will not be purchased. O c. 4.40 O d. 5.50
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