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uppose City A suffers from their cross-boundary air pollution from City B. Installing an air filtering system is the only solution to the problem. The
uppose City A suffers from their cross-boundary air pollution from City B. Installing an air filtering system is the only solution to the problem. The residents in both cities value the air filtering system as below: City A: Q = 160 - 20P1 City B: Q = 60 - 5P2 where Q is the expected percentage of P.M 2.5 filtered by the system. a. What is the market demand for the air filtering system? b. If the market supply for the system is P = 6 0.15Q, what would be the social optimal equilibrium price and quantity
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