Suppose that both farmers and ranchers live in a watershed. Farmers have the following demand (MB) for units of water (W): MB = 200 - W whereas ranchers have the following demand for water: MB = 200 - 2W Suppose the supply of water is 150 units. What is the efficient allocation of water between farmers and ranchers?

Suppose that both farmers and ranchers live in a watershed. Farmers have the following demand (MB) for units of water (W): MB = 200 - W whereas ranchers have the following demand for water: MB = 200 - 2W Suppose the supply of water is 150 units. What is the efficient allocation of water between farmers and ranchers?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 18SQ

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