Scenario 1 Suppose there are three residents in a neighborho…

Scenario 1 Suppose there are three residents in a neighborhood, Isabelle, Joe, and Kennedy. They are considering the allocation of a certain public good in the neighborhood. Isabelle’s demand for the public good is Q = 60 – 4P. Joe’s demand for the public good is Q = 30 – 2P. Kennedy’s demand for the public good is Q=15 – P.

Suppose the government has promised to pay $[p] billion doll…

Suppose the government has promised to pay $[p] billion dollars in benefits [y] years from now.  Assuming an interest rate of [i], what is the present discounted value (PDV) of the obligation? Answer in billions of dollars, rounded to two decimal places (i.e. enter 3.67 for $3.67 billion)