The market demand for private goods is found by summing individual demands _____, and the total demand for public goods is found by summing individual demands _____.

Question

Quizplus · Accepted Answer

The market demand for private goods is found by summing individual demands horizontally because each individual's demand adds to the total quantity demanded at each price level. For public goods, the total demand is found by summing individual demands vertically because public goods are non-rivalrous and non-excludable, meaning each individual's valuation of the good adds to the total value or willingness to pay for the good at any given quantity.

The Market Demand for Private Goods Is Found by Summing