4b. The Parking Services Department on a small college campus has control of 1000 Student parking spaces. The annual demand for these spaces, as a function of the Price, p, for a parking permit, is QD = 2000 - 20p. i. If Parking Services wants to set a Pareto-efficient price but believes a parking space is a rival good, what price will it set? ii. Following a survey, Parking Services determines that a parking space is a non- rival good with the number of times it is shared, a, a function of the price, a = 20 -1/2p. With this information, what is the profit-maximizing price of a permit, and how many students will share a parking space?

4b. The Parking Services Department on a small college campus has control of 1000 Student parking spaces. The annual demand for these spaces, as a function of the Price, p, for a parking permit, is QD = 2000 - 20p. i. If Parking Services wants to set a Pareto-efficient price but believes a parking space is a rival good, what price will it set? ii. Following a survey, Parking Services determines that a parking space is a non- rival good with the number of times it is shared, a, a function of the price, a = 20 -1/2p. With this information, what is the profit-maximizing price of a permit, and how many students will share a parking space?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 11SQP

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