Refer to the graphs which show demand curves reﬂecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. The collective willingness to pay for the ﬁrst unit of this public good is
A) $18.
B) $14.
C) $10.
D) $6.

Question

Refer to the graphs which show demand curves reﬂecting the prices Alvin and Elmer are willing to pay for a public good, rather than do without it. The collective willingness to pay for the ﬁrst unit of this public good is
A) $18. 
B) $14. 
C) $10. 
D) $6.

Quizplus · Accepted Answer

The collective willingness to pay for the first unit of the public good can be determined by finding the point where the two individual demand curves intersect each other. This is at a price of $18, which means that both Alvin and Elmer are willing to pay up to $18 in order to obtain the first unit of the public good. Therefore, the correct choice is A) $18.

Refer to the Graphs Which Show Demand Curves Reﬂecting the Prices