On the basis of the three individual demand schedulés below, and determine the collective demand schedule on the assumption that the good is a public good. Instructions: Enter only whole numbers in the table below. Demand Curve - Public Good Individual #1 Individual 42 Individual #3 Amount Society is Willing to Pay Price 94 Price Qa Qd od $16 0 $16 1 0 1 $ 14 0 14 2 0 2 12 12 0 3 3 1 10 4 10 2 4 8 8 5 3 5 6 6 4 6 4 7 5 7 8 2 6 8 shaun and the following supply schedule to ascertain the optimal quantity of this public good 6 4 2 1 2 3 4 5 2 Price $16 14 12 10 8 6 4

Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
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
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A10
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 only whole numbers in the table below.
Demand Curve -
Public Good
Individual #1
Individual #2
Individual #3
Amount Society is:
Willing to Pay
Price
Od
Price
Qa
Price
Ra
$16
0
$16
1
$16
0
$
14
0
14
2
14
0
12
12.
12
10
10
4
10
8
2
8
5
8
3
6
3
6
6
6
4
4
4
4
7
4
5
2
8
5
2
8
2
6
Use this public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.
P
Q
$38
32
26
20
14
8
Optimal quantity |
0
1
10
8
6
4
2
0
3
1
2
Od
1
2
3
4
5
6
7
Transcribed Image Text: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 only whole numbers in the table below. Demand Curve - Public Good Individual #1 Individual #2 Individual #3 Amount Society is: Willing to Pay Price Od Price Qa Price Ra $16 0 $16 1 $16 0 $ 14 0 14 2 14 0 12 12. 12 10 10 4 10 8 2 8 5 8 3 6 3 6 6 6 4 4 4 4 7 4 5 2 8 5 2 8 2 6 Use this public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. P Q $38 32 26 20 14 8 Optimal quantity | 0 1 10 8 6 4 2 0 3 1 2 Od 1 2 3 4 5 6 7
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