What is the efficient amount of air quality


Problem

Consider an air basin with only two consumer, Huck and Matilda. Suppose Huck's demand for air quality is given by q_h=1-p where p is Huck's marginal willingness to pay for air quality. Similarly, Matilda's demand is given by q_m=2-2p. Air quality can be supplied according to q = p where p is the marginal cost of supply.

a) Graph the aggregate demand for air quality along with individual demands.

b) What is the efficient amount of air quality?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What is the efficient amount of air quality
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