Q. 1hi, could you help me for the whole of qn 3? thanks a lot!! 3. Suppose 3 consumers, A, B and C, of a public good have standing (i.e. is the "society"). Eachconsumer is asked to pay for 1/3 of a public good at a price of P/3.Price, PSocial Demand (i.e. vertical sum of DA + DB + Dc)SMCD.D,H.P/3Q*Quantity, Qa. Suppose A can consume at A's preferred quantity of Q, identify A's consumersurplus in the figure.b. Suppose now that A is forced to consume at point Q* where the aggregate marginalsocial benefit equals the marginal cost. How has A's consumer surplus changed?C. Similarly, what is the change in consumer surplus for B and C?d. Once again, consider society consuming at Q. Would it make sense to expandoutput to Q* using Pareto's rule and the Kaldor-Hicks rule?(Hint: Area S = Net gains of B and C-loss to A)

Given information in graph Three consumers A, Consumer B and Consumer C are consuming public good.…

Suppose 3 consumers, A, B and C, of a public good have standing (i.e. is the "society"). Ea consumer is asked to pay for 1/3 of a public good at a price of P/3. Price, P Social Demand (i.e. vertical sum of DA+ DB + Dc) S MC

Suppose 3 consumers, A, B and C, of a public good have standing (i.e. is the "society"). Ea consumer is asked to pay for 1/3 of a public good at a price of P/3. Price, P Social Demand (i.e. vertical sum of DA+ DB + Dc) S MC

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter11: Public Goods And Common Resources

Section: Chapter Questions

Problem 2PA

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