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Business, 10.06.2020 01:57 user11883661
On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine (a) the market demand schedule on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good.
Individual #1 Individual #2 Individual #3 Demand Curve- Public Good
Price Qd Price Qd Price Qd Amount Society is Willing to Pay Qd
$16 0 $16 1 $16 1 $ 1
14 1 14 2 14 2 2
12 2 12 3 12 3 3
10 3 10 4 10 4 4
8 4 8 5 8 5 5
6 5 6 6 6 6 6
4 6 4 7 4 7 7
2 7 2 8 2 8 8
Use this public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.
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