Find the equilibrium amount of water

Reference no: EM131232187

Suppose the market for household drinking water in San Francisco is modeled as follows:
S = MSC = 10 + 0.2Q
D = MSB = 40 - 0.4Q
where Q is millions of gallons per day and MSC and MSB are in cents per gallon.

a. Assuming the city officials use a flat fee pricing system for drinking water, find the equilibrium amount of water that households in San Francisco would use.

b. Suppose instead that officials set the price of water to reflect the true marginal social costs of production. Show that such an approach promotes water conservation by determining the equilibrium quantity, and find the price that must be set to achieve this outcome.

Reference no: EM131232187

Questions Cloud

Predict the effect on the price and quantity of msw services : Diagram a general model of MSW management services. Show the simultaneous effect of the federal restrictions on landfills and rising consumer awareness of the benefits of "green packaging." Assuming a private competitive market, predict the effect..

What did you learn from your interview : Imagine you are the branch manager of a local bank in your community. What did you learn from your interview? What recommendations did your interviewee make regarding this situation

Propose three or more ethical strategic alternatives : Propose three or more ethical strategic alternatives based on your swot analysis for possible implementation. Choose one or a combination of 2 or more of the ethical alternatives for implementation.

Describe the scope and analyze how to control the scope : Describe the needed integration with other systems and infrastructure. Note: Database and Data Warehousing, Cloud Technology and Virtualization, and Network Infrastructure and Security.

Find the equilibrium amount of water : Assuming the city officials use a flat fee pricing system for drinking water, find the equilibrium amount of water that households in San Francisco would use.

Determine the water pricing structure : Determine the water pricing structure that is used in your hometown. Using the criterion of allocative efficiency, defend the current practice, or propose an alternative pricing structure.

Evaluate a deposit/refund system for pesticide containers : Design and evaluate a deposit/refund system for pesticide containers.

Determine the values of q : Consider the CMOS RAM cell and data lines in Figure with circuit and transistor parameters described in Problem.- Determine the values of Q.

Explain your rationale behind the design of the e-r diagram : Create a database schema that supports the company's business and processes. Explain and support the database schema with relevant arguments that support the rationale for the structure.Note: The minimum requirement for the schema should entail th..

User Account

All Pages