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Author Question: Explain what change will bring a shift of a curve. What will be an ideal ... (Read 64 times)

sjones

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on: Jun 29, 2018
Explain what change will bring a shift of a curve.
 
  What will be an ideal response?

Question 2

What is the optimal level of provision of public goods?
 
  What will be an ideal response?


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AngeliqueG

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Reply #1 on: Jun 29, 2018
Answer to Question 1

A curve shifts when there is a change in the value of a relevant variable that is not graphed on the axes. In this case the entire curve shifts.

Answer to Question 2

The optimal level of provision of public goods is the level at which resources are drawn from the production of other goods and services only to the extent that people want the public good and are willing to pay for it. At this level, society's willingness to pay per unit is equal to the marginal cost of producing the good.


sjones

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Reply #2 on: Jun 29, 2018
Correct answers!


AngeliqueG

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Reply #3 on: Jun 29, 2018
Great! Please up vote :D


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