What would be the equilibrium price and quantity for the town?

Assume that a small town uses a referendum to overcome the free-ridership problem and determine how Show more Assume that a small town uses a referendum to overcome the free-ridership problem and determine how its residents might value a new water filtration system for its public water supply. The voting results are aggregated by the towns two districts yielding the following demand estimates: District 1: Q = 120 20P1 District 2: Q = 60 5P2 where Q is the expected percent of copper to be filtered by the system and P is the price in millions of dollars. a. [1 point] Based on these estimates determine the towns market demand for this public good the new filtration system. b. [1point] If the market supply for the system were P = 6 + 0.15Q What would be the equilibrium price and quantity for the town? Show less

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