There are 2 competing users for stream water, user a and user b. the wtp for water for a is p=10-qa, and for b it's p=15-2qb, where q is the quantity of water demanded. the two users have different marginal costs of extraction for water, mca=2, while mcb=3.

a. compute the marginal net benefit (mnb) of water consumption for each user.
b. what is the optimal allocation of water when the water supply is s=15?
c. what is the surplus to each user for the optimal allocation?
d. what is the optimal allocation when s=10?
e. draw a picture of the previous solution.

1. all other things equal, according to the law of demand, when the price of a good falls, the demand for the good falls the demand for the good rises the quantity demanded of the good falls the quantity demanded of the good rises 2. when a market is in equilibrium, the quantity of the good that buyers are willing and able to buy exactly equals the quantity that sellers are willing and able to sell cannot be determined is less than the quantity that sellers are willing and able to sell is greater than the quantity that sellers are willing and able to sell 3. which of the following factors does not influence the demand for a good or service? consumer (buyer) income the price of related goods the number of sellers buyer expectations 4. when the number of sellers in a market increases, demand rises supply rises the price rises, all else equal the number of buyers falls

Amarket that consists of all possible consumers regardless of their specific needs or wants is a

Which term best fits the sentence? is the process of reasoning, analyzing, and making important decisions. it’s an important skill in making career decisions. a. critical thinking b. weighing pros and cons c. goal setting