Gobbet 10 - Aggregate Demand Public Good

Gobbet 10 - Aggregate Demand Public Good - 2. Jack and Jill...

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Gobbet # 10: Aggregate Demand for Public Goods 1. Say there are 2 consumers, Jack and Jill, who each have a demand for scuba diving trips (a private good). Jack’s demand for scuba diving trips is: Q 1 = 25 – P/2 Jill’s demand for scuba diving trips is: Q 2 = 15 – P/2 What is the aggregate demand for scuba diving trips?
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Unformatted text preview: 2. Jack and Jill also each have demand for coral reef protection (a public good). Assume the individual demands are the same as those listed above. What is the aggregate willingness to pay (WTP) for coral reef protection? What is the difference between a private and a public good?...
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This note was uploaded on 12/16/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell University (Engineering School).

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