This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why is the market demand curve for public goods calculated as a vertical summation of individual ... (Read 106 times)

Capo

  • Hero Member
  • *****
  • Posts: 545
on: Jun 29, 2018
Why is the market demand curve for public goods calculated as a vertical summation of individual demand curves?
 
  What will be an ideal response?

Question 2

Refer to Figure 6-1. A perfectly inelastic demand curve is shown in
 
  A) Panel A. B) Panel B. C) Panel C. D) Panel D.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

okolip

  • Sr. Member
  • ****
  • Posts: 362
Reply #1 on: Jun 29, 2018
Answer to Question 1

Public goods are non-rival and non-excludable. Everyone consumes the same quantity of a public good. The market demand for public goods is derived by summing individual demand curves vertically. Individual demand curves need to be summed vertically because this shows the amount of money consumers are willing to pay for each level of the public good.

Answer to Question 2

A


Capo

  • Member
  • Posts: 545
Reply 2 on: Jun 29, 2018
Gracias!

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are major differences in the metabolism of morphine and the illegal drug heroin. Morphine mostly produces its CNS effects through m-receptors, and at k- and d-receptors. Heroin has a slight affinity for opiate receptors. Most of its actions are due to metabolism to active metabolites (6-acetylmorphine, morphine, and morphine-6-glucuronide).

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

A nearly motionless individual, alert to danger, will whistle when alarmed to warn other groundhogs A nearly motionless individual, alert to danger, will whistle when alarmed to warn other groundhogs
Worldly Goods Worldly Goods
Three days after the Boston Marathon explosion, the FBI released this photograph that had been taken Three days after the Boston Marathon explosion, the FBI released this photograph that had been taken
Unregulated populations "J-shaped curve" Unregulated populations "J-shaped curve"
Temporal Summation Temporal Summation
Stock Market Question Stock Market Question
Video: Introduction to Dysrhythmia

For a complete list of videos, visit our video library