# View the step-by-step solution to: On the basis of the three individual demand schedules below, and

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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. (Determine amount society is willing to pay for each)

Individual #1 Individual #2 Individual #3 Demand Curve -
Public Good
Price Qd Price Qd Price Qd Amount Society is Willing to Pay Qd
\$16 0 \$16 1 \$16 0 \$ 1
14 0 14 2 14 1 2
12 1 12 3 12 2 3
10 2 10 4 10 3 4
8 3 8 5 8 4 5
6 4 6 6 6 5 6
4 5 4 7 4 6 7
2 6 2 8 2 7 8

Use this public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.

P Qs
\$42 10
36 8
30 6
24 4
18 2
12 0

Optimal quantity =
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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...

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