Posted: December 30th, 2021
A wide range of public projects require land. The government of Ontario recently received funds under the federal infrastructure program to build two new soccer stadiums in the greater Toronto area. To build these sport facilities, the government needs to buy land. The market for land in this region is competitive.
The initial private sector demand for this land is given by the following function:
D0 =15,750 – 0.75 P
Where, D is quantity demanded in acres and P is measured in dollars per acre. The public demand for land driven by federal infrastructure program shifts the demand function for this land to:
Place an order in 3 easy steps. Takes less than 5 mins.