Refer to the information given in Table 16.5 below to answer the question that follows.
Table 16.5 $\begin{array} { ccc } \text { Units of } & \text { Person A's } & \text { Person B's }\
\text {Public Good}&\text { Willingness to Pay}&\text { Willingness to Pay}\
\hline1 & \$ 50 & \$ 60 \
2 & 30 & 50 \
3 & 0 & 30\
\hline
\end{array}$
-Refer to Table 16.5. A point on the market demand curve for this public good would be: at a price of ________ quantity demanded would be ________.
A) $30; 5
B) $50; 3
C) $100; 1
D) $110; 1

Question

Refer to the information given in Table 16.5 below to answer the question that follows.
Table 16.5 $\begin{array} { ccc } \text { Units of } & \text { Person A's } & \text { Person B's }\
\text {Public Good}&\text { Willingness to Pay}&\text { Willingness to Pay}\ 
\hline1 & \$ 50 & \$ 60 \
2 & 30 & 50 \
3 & 0 & 30\
\hline
\end{array}$
-Refer to Table 16.5. A point on the market demand curve for this public good would be: at a price of ________ quantity demanded would be ________.
A) $30; 5
B) $50; 3
C) $100; 1
D) $110; 1

Quizplus · Accepted Answer

The market demand for a public good is found by vertically summing individual willingness to pay. At a price of $110, both Person A and Person B are willing to pay for 1 unit ($50 + $60 = $110), so the quantity demanded would be 1.

Refer to the Information Given in Table 16 -Refer to Table 16