Two families (A and B) live on a dark street. The local council will provide street lights if the two families are willing to pay for the running costs, which are $30 a month per street light. The demand of the two families for street lights is estimated to be and , where P is the price the family is willing to pay for a street light per month.
i. Express the total demand function for street lights.
ii. How many street lights should be provided?
iii. If the council charges family A $15 and family B $15, could unanimity be achieved?
iv. What would be the share of expenses between family A and B if unanimity is to be achieved?