3a. 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.Instructions: Enter your answers as a whole number.eBlockIndividual 152$457$10$13$16$19Price$8765432124€Qd810000123415Individual 2Opitimal quantity=Price$67654321Qd1234567BIndividual 3Price58654321b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good.Supply ofPublic GoodPrice Os01Qd00123456Demand for Public GoodPriceQd12345678

The price in case of public good is calculated by summing up the willingness to pay for the quantity…

a. 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. Instructions: Enter your answers as a whole number Individual 1 Price $8 7 6 5 $2 $4 67 $10 $13 $16 $19 4 3 2 1 Supply of Public Good Price 09 0 2 Of 0 0 0 1 2 3 4 6 . 10 4 5 Individual 2 Opitimal quantity= Price $6 7 6 5 4 3 2 1 Od 1 2 3 4 5 6 7 8 Individual 3 Price 58 71 6 5 4 3 2 1 Qd 0 0 T 2 3 4 5 6 b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. Demand for Public Good Price Qd 1 2 3 4 5 6 7 8

a. 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. Instructions: Enter your answers as a whole number Individual 1 Price $8 7 6 5 $2 $4 67 $10 $13 $16 $19 4 3 2 1 Supply of Public Good Price 09 0 2 Of 0 0 0 1 2 3 4 6 . 10 4 5 Individual 2 Opitimal quantity= Price $6 7 6 5 4 3 2 1 Od 1 2 3 4 5 6 7 8 Individual 3 Price 58 71 6 5 4 3 2 1 Qd 0 0 T 2 3 4 5 6 b. Use the public demand schedule above and the following supply schedule to ascertain the optimal quantity of this public good. Demand for Public Good Price Qd 1 2 3 4 5 6 7 8

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter10: Externalities

Section: Chapter Questions

Problem 3PA: Greater consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on...

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