Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P= 5 +0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for portable radios is: P=20-0.2Q. If each portable radio imposes $3.60 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number? units (in hundreds).

Suppose the supply curve of portable radio rentals in Golden Gate Park is given by: P= 5 +0.1Q, where P is the daily rent per unit in dollars and Q is the volume of units rented in hundreds per day. The demand curve for portable radios is: P=20-0.2Q. If each portable radio imposes $3.60 per day in noise costs on others, by how much will the equilibrium number of portable radios rented exceed the socially optimal number? units (in hundreds).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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