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The market demand curve of a good that is rival in consumption and excludable is the horizontal sum of the individual demand curves. However, the marginal social surplus curve of a public good is the vertical sum of the individual marginal benefit curves. As What aspect of a public good causes the demand curves to be summed vertically instead of horizontally? Whether we sum vertically or horizontally depends only on whether the good is excludable. Whether we sum vertically or horizontally depends only on whether the good is rival in consumption.

The market demand curve of a good that is rival in consumption and excludable is the horizontal sum of the individual demand curves. However, the marginal social surplus curve of a public good is the vertical sum of the individual marginal benefit curves. As What aspect of a public good causes the demand curves to be summed vertically instead of horizontally? Whether we sum vertically or horizontally depends only on whether the good is excludable. Whether we sum vertically or horizontally depends only on whether the good is rival in consumption.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 3PA: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on...
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The market demand curve of a good that is rival in consumption and excludable is the horizontal sum of the individual demand curves. However, the marginal social surplus curve of a public good is the vertical sum of the individual marginal benefit curves. What aspect of a public good causes the demand curves to be summed vertically instead of horizontally? Whether we sum vertically or horizontally depends only on whether the good is excludable. Whether we sum vertically or horizontally depends only on whether the good is rival in consumption. A vertical sum of individual demand curves is the same thing as a horizontal sum of individual demand curves. Whether we sum vertically or horizontally depends on whether the government, as opposed to the free market, usually provides the good.
Transcribed Image Text:The market demand curve of a good that is rival in consumption and excludable is the horizontal sum of the individual demand curves. However, the marginal social surplus curve of a public good is the vertical sum of the individual marginal benefit curves. What aspect of a public good causes the demand curves to be summed vertically instead of horizontally? Whether we sum vertically or horizontally depends only on whether the good is excludable. Whether we sum vertically or horizontally depends only on whether the good is rival in consumption. A vertical sum of individual demand curves is the same thing as a horizontal sum of individual demand curves. Whether we sum vertically or horizontally depends on whether the government, as opposed to the free market, usually provides the good.
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