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[colten]

Suppose the government is considering building a new motorway from Edinburgh to
Newcastle. Access would be free to all motorists. The daily demand for trips on the
motorway is estimated to be
Q = 1000 – 10P.
The cost of building the motorway is £100,000,000, the interest on which would be
£25,000 per day. The motorway will last for ever and suffer no depreciation.
i) How many trips will there be on the new motorway?
ii) What is the consumer surplus to the drivers using the new motorway?
iii) What are the net benefits of this project?
iv) What are the net benefits of this project if we now suppose that each trip on the
motorway causes £10 of environmental damage?

I think I have the first part and I have tried my best to answer it but I just don't know if I am doing the right thing. Can anyone guide me in the right direction? Thank you! :D