Write down a 200-word paper regarding the following situation.
A) Consider the given: The city council has just approved the construction of the water park in your town. You are responsible for studying the impact of the new water park on the local economy and surrounding community.
i) You know that the water park will raise the traffic flow in the streets around the water park. There are both businesses and neighborhoods adjacent to the raised traffic flow. The cost to the community is estimated to be $6 per person. What type of externality is this? Why?
ii) Graph the market for water park business, labeling the demand curve, the social-value curve, the market-equilibrium level of output, and the efficient level of output.
iii) Determine the per-unit amount of the externality?
iv) You as well know that the water park will have events in the evening. This will raise both foot traffic and street traffic at night. You believe this will enhance the safety of the surrounding businesses, with an estimated benefit of $3 per water park attendee. What type of externality is this? Why?
v) Make a new graph illustrating the market for water park business for these two externalities. Label the demand curve, the social-value curve, the market equilibrium level of output, and the efficient level of output.
vi) Determine the per-unit amount of both externalities?
vii) Discuss both government and private solutions which would result in an efficient outcome.
B) Format your paper by using West Writing Style Handbook guidelines.
C) Comprise a minimum of two sources, which might comprises of readings from the University Library, your text, and other selections.
D) Submit your work through My Assignments.