Robinson\'s demand for pineapples is given as Q = 40 - 4P while Friday\'s is Q =

Question

Robinson's demand for pineapples is given as Q = 40 - 4P while Friday's is Q = 20 - P. Supply is given as Qs = 6 + P, and Pc = $1.

Find equilibrium price, equilibrium quantity, and the amounts Robinson and Friday will both end up consuming.

P*= 9   Q*=15

Ok I get that, but here's what I really need..

Then- suppose Rob and Fri are actually dealing with a public good like fireworks (# of rockets) and they must consume the same quantity. Effeciency requires Robinson's willingness to pay + Friday's willingness to pay must = MRT. What is the new effecient Q, and what will Rob and Fri now each be willing to pay?

Please help soon!

Explanation / Answer

Robert's demand: Q = 40 - 4P

Friday's demand: Q = 20 - P

Since both must consumer the same quantity:

40 - 4P = 20 - P

3P = 20

P = 20/3 = 6.67

So,

Q = 20 - P = 20 - 6.67 = 13.33

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