a. On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society determine the collective demand schedule on the assumption that the good is a public good Instructions: Enter your answers as a whole number. Individual 1 Individual 2 Individual 3 Demand for Public Good Price Qd Price Price Qd Price $16 $16 1. 1. $16 14 2. 2. 14 2. 14 3. 12 3. 12 3. 12 4. 10 4. 10 4. 10 5. 6. 6. 6. 9. 6. 7. 7. 4. 7. 4. 7. 4.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
Section: Chapter Questions
Problem 3CQ
icon
Related questions
Question
a. On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society.
determine the collective demand schedule on the assumption that the good is a public good.
Instructions: Enter your answers as a whole number.
Individual 2
Individual 3
Demand for Public Good
Individual 1
Qd
Price
Qd
Price
Qd
Price
Qd
Price
$16
$16
$16
1.
14
2.
14
2.
14
3.
12
3.
3.
12
3
12
10
4.
10
10
8.
6.
6.
6.
7.
7.
4.
4.
8.
8.
2.
8.
2.
2
b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.
10
Optimal quantity
56740
Transcribed Image Text:a. On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society. determine the collective demand schedule on the assumption that the good is a public good. Instructions: Enter your answers as a whole number. Individual 2 Individual 3 Demand for Public Good Individual 1 Qd Price Qd Price Qd Price Qd Price $16 $16 $16 1. 14 2. 14 2. 14 3. 12 3. 3. 12 3 12 10 4. 10 10 8. 6. 6. 6. 7. 7. 4. 4. 8. 8. 2. 8. 2. 2 b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. 10 Optimal quantity 56740
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Microeconomics
Microeconomics
Economics
ISBN:
9781337617406
Author:
Roger A. Arnold
Publisher:
Cengage Learning