Based on 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. Responses go in the Amount society is willing to pay sections.
Individual 1 Individual 2 Individual 3 Public Demand
Price
Qd
Price
Qd
Price
Qd
Amount society is willing to pay
Qd
$8
1
$8
0
$8
1
?
1
7
2
7
0
7
2
?
2
6
3
6
0
6
3
?
3
5
4
5
1
5
4
?
4
4
5
4
2
4
5
?
5
3
6
3
3
3
6
?
6
2
7
2
4
2
7
?
7
1
8
1
5
1
8
?
8
Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.
Price
Quantity Supplied
$22
10
21
8
20
6
19
4
18
2
17
0
Instructions: Enter your answer as a whole number.
Optimal quantity = ______?
Based on 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. Responses go in the Amount society is willing to pay sections.
Individual 1 Individual 2 Individual 3 Public Demand
| Price | Qd | Price | Qd | Price | Qd | Amount society is willing to pay | Qd |
| $8 | 1 | $8 | 0 | $8 | 1 | ? | 1 |
| 7 | 2 | 7 | 0 | 7 | 2 | ? | 2 |
| 6 | 3 | 6 | 0 | 6 | 3 | ? | 3 |
| 5 | 4 | 5 | 1 | 5 | 4 | ? | 4 |
| 4 | 5 | 4 | 2 | 4 | 5 | ? | 5 |
| 3 | 6 | 3 | 3 | 3 | 6 | ? | 6 |
| 2 | 7 | 2 | 4 | 2 | 7 | ? | 7 |
| 1 | 8 | 1 | 5 | 1 | 8 | ? | 8 |
Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.
| Price | Quantity Supplied |
| $22 | 10 |
| 21 | 8 |
| 20 | 6 |
| 19 | 4 |
| 18 | 2 |
| 17 | 0 |
Instructions: Enter your answer as a whole number.
Optimal quantity = ______?
Related textbook solutions
Related questions
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 A Individual B Individual C
| Price | Qd | Price | Qd | Price | Qd |
| 8 | 0 | 8 | 1 | 8 | 0 |
| 7 | 0 | 7 | 2 | 7 | 0 |
| 6 | 0 | 6 | 3 | 6 | 1 |
| 5 | 1 | 5 | 4 | 5 | 2 |
| 4 | 2 | 4 | 5 | 4 | 3 |
| 3 | 3 | 3 | 6 | 3 | 4 |
| 2 | 4 | 2 | 7 | 2 | 5 |
| 1 | 5 | 1 | 8 | 1 | 6 |
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 |
Private demand |
Public Demand |
|||||
Price |
Qty |
Price |
Qty |
Price |
Qty |
Price |
Qty |
Price society is willing to pay |
Qty |
$8 |
1 |
$8 |
1 |
$8 |
1 |
$8 |
|
|
1 |
7 |
2 |
7 |
2 |
7 |
2 |
7 |
|
|
2 |
6 |
3 |
6 |
3 |
6 |
3 |
6 |
|
|
3 |
5 |
4 |
5 |
4 |
5 |
4 |
5 |
|
|
4 |
4 |
5 |
4 |
5 |
4 |
5 |
4 |
|
|
5 |
3 |
6 |
3 |
6 |
3 |
6 |
3 |
|
|
6 |
2 |
7 |
2 |
7 |
2 |
7 |
2 |
|
|
7 |
1 |
8 |
1 |
8 |
1 |
8 |
1 |
|
|
8 |
use the demand schedule to calculate total revenue and marginal revenue at each quantity.
| Price (P) | Quantity Demanded (Q) |
| 7 | 0 |
| 6.5 | 1 |
| 6 | 2 |
| 5.5 | 3 |
| 5 | 4 |
| 4.5 | 5 |
| 4 | 6 |
| 3.5 | 7 |
| 3 | 8 |
| 2.5 | 9 |
