On the basis of the three Indlvidual demand schedules below, and assuming these

Question

On the basis of the three Indlvidual demand schedules below, and assuming these three people are the only ones in the soclety, 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 Instructions: Enter your answers as whole numbers (in the gray-shaded cells). 3Answer is complete but not entirely correct. Individual #1 Individual #2 Individual #3 (a) Private Demand (b) Public Demand Price ad Price Qd Price Q Price Qd Price Qd $16 14 12 10 $16 14 12 10 $16 14 12 10 160 40 2 2 3 10 4 $16 12 10 15 18 21

Explanation / Answer

The market demand schedule for private good is the horizontal summation of individual demand schedule. The demand schedule for public good is the vertical summation of these curves.

Public demand Price ($) Qd 21 1 18 2 15 3 12 4 9 5 6 6 4 7 2 8

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