Demand Estimation for Public Goods. The nonrival consumption concept gives rise to fundamental differences between demand estimation for public goods and demand estimation for private goods.
A. Explain the graphical difference between aggregating individual demand for public goods versus private goods.
B. Can the aggregate value of a given public good ever be less than the maximum value placed upon it by a single individual?

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The Answer of Demand Estimation for Public Goods. The nonrival consumption concept gives rise to fundamental differences between demand estimation for public goods and demand estimation for private goods.
A. Explain the graphical difference between aggregating individual demand for public goods versus private goods.
B. Can the aggregate value of a given public good ever be less than the maximum value placed upon it by a single individual?