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Business, 18.03.2021 01:20, jjmarie612
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.
Individual #1 Individual #2 Individual #3 Demand Curve- Public Good
Price Qd Price Qd Price Qd Amount Society Qd
is Willing to Pay
$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.
P Qd
$20 10
18 8
16 6
14 4
12 2
10 0
The Optimal quantity = .
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Answers: 1
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