A demand curve for a public good is determined by
A) summing vertically the individual demand curves for the public good.
B) summing horizontally the individual demand curves for the public good.
C) combining the amounts of the public good that the individual members of society demand at each price.
D) multiplying the per-unit cost of the public good by the quantity made available.

Question

Quizplus · Accepted Answer

The demand curve for a public good is determined by summing vertically the individual demand curves for the public good. This is because public goods are non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the availability for others, and it's not feasible to exclude anyone from using the good. Therefore, the total willingness to pay (or demand) at each price level is the sum of each individual's willingness to pay, which is represented by vertically summing the individual demand curves.

A Demand Curve for a Public Good Is Determined by