a. 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 your answers as a whole number. Individual 1 Individual 2 Individual 3 Demand for Public Good Price Qd Price Qd Price Qd Price Qd $16 1 $16 0 $16 1 $ 22 1 14 2 14 0 14 2 $ 19 2 12 3 12 0 12 3 $ 16 3 10 4 10 1 10 4 $ 13 4 8 5 8 2 8 5 $ 10 5 6 6 6 3 6 6 $ 7 6 4 7 4 4 4 7 $ 4 7 2 8 2 5 2 8 $ 2 8 . Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. Supply of Public Good Price Qs $42 10 $36 8 $30 6 $24 4 $18 2 $12 1 $8 0 $4 0 Optimal quantity=

a. 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 your answers as a whole number. Individual 1 Individual 2 Individual 3 Demand for Public Good Price Qd Price Qd Price Qd Price Qd $16 1 $16 0 $16 1 $ 22 1 14 2 14 0 14 2 $ 19 2 12 3 12 0 12 3 $ 16 3 10 4 10 1 10 4 $ 13 4 8 5 8 2 8 5 $ 10 5 6 6 6 3 6 6 $ 7 6 4 7 4 4 4 7 $ 4 7 2 8 2 5 2 8 $ 2 8 . Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. Supply of Public Good Price Qs $42 10 $36 8 $30 6 $24 4 $18 2 $12 1 $8 0 $4 0 Optimal quantity=

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 22CTQ: Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are...

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