22 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 2 Individual 3 Individual 1 Price $8 7 6 5 4 3 2 1 $2 $4 $7 $10 $13 $16 $19 Qd 0 0 0 1 2 2 4 3 4 5 6 8 10 Price $8 7 Optimal quantity= 6 5 4 3 2 1 Qd 1 2 3 4 5 6 7 8 Price $8 7 6 5 4 3 2 1 Qd 0 0 1 2 3 4 5 6 Demand for Public Good Price Qd 1 2 b. 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 On 0 3 4 5 6 7 8
22 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 2 Individual 3 Individual 1 Price $8 7 6 5 4 3 2 1 $2 $4 $7 $10 $13 $16 $19 Qd 0 0 0 1 2 2 4 3 4 5 6 8 10 Price $8 7 Optimal quantity= 6 5 4 3 2 1 Qd 1 2 3 4 5 6 7 8 Price $8 7 6 5 4 3 2 1 Qd 0 0 1 2 3 4 5 6 Demand for Public Good Price Qd 1 2 b. 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 On 0 3 4 5 6 7 8
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 8PA
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Transcribed Image Text:22
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 2
Individual 3
Price
$8
7
6
5
4
Individual 1
3
2
1
$2
54
$7
$10
$13
Qd
0
0
0
$16
$19
On
0
1
2
4
1
2
6
8
10
3
4
5
Price
$8
7
Optimal quantity=
6
5
4
3
2
1
Qd
1
2
3
4
5
6
7
8
b. 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
Price
$8
7
6
5
4
3
2
1
Qd
0
0
1
2
3
4
5
6
Demand for Public Good
Price
Qd
1
2
3
4
5
6
7
8
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