Equilibrium and the cost per campsite per night. Installing flush toilets will involve an increase in the cost per campsite per night. Researchers have calculated the demand and supply curves for flush toilets at this park and discovered that they are both
perfectly straight lines. At $35 per campsite per night, no one will want flush toilets. At $0 per campsite per night, campers will
demand seven flush toilets.
Managers are willing to supply no flush toilets at the current campsite cost of $5 per night, but are willing to supply eight flush
toilets at $25 per campsite per night.
Please use the supply, demand and total surplus information to answer the three questions.
What is the number of flush toilets desired at the equilibrium point?
I
toilets
What is the total surplus?