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 54 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
:D TYSM

irishcancer18

  • Member
  • Posts: 310
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Historic treatments for rheumatoid arthritis have included gold salts, acupuncture, a diet consisting of apples or rhubarb, nutmeg, nettles, bee venom, bracelets made of copper, prayer, rest, tooth extractions, fasting, honey, vitamins, insulin, snow collected on Christmas, magnets, and electric convulsion therapy.

Did you know?

In Eastern Europe and Russia, interferon is administered intranasally in varied doses for the common cold and influenza. It is claimed that this treatment can lower the risk of infection by as much as 60–70%.

Did you know?

It is believed that humans initially contracted crabs from gorillas about 3 million years ago from either sleeping in gorilla nests or eating the apes.

Did you know?

HIV testing reach is still limited. An estimated 40% of people with HIV (more than 14 million) remain undiagnosed and do not know their infection status.

Summation of Heart Sounds, Wide Split of S1 Summation of Heart Sounds, Wide Split of S1
Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ... Human photopic (cone) and scotopic (rod) spectral sensitivity curves. The peak of each curve has ...
The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve. The adsorption spectrum of rhodopsin compared with the human scotopic spectral sensitivity curve.
Thermodynamic Diagrams and Vertical Temperature Profiles Thermodynamic Diagrams and Vertical Temperature Profiles
The lifetime risk for schizophrenia varies with the degree of relationship to an affected individual The lifetime risk for schizophrenia varies with the degree of relationship to an affected individual
Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ... Suppose the market supply curve is p = 5Q. If price increases from 10 to 15, the change in ...
Video: Inflammation

For a complete list of videos, visit our video library