Explanation: The following figure graphs the answer.

-Refer to the figure above.If Good X is a public good,what is the market price when the total quantity demanded on the market is 3?
A) $8
B) $14
C) $12
D) $10

Question

Explanation: The following figure graphs the answer.
 
-Refer to the figure above.If Good X is a public good,what is the market price when the total quantity demanded on the market is 3?
A) $8 
B) $14 
C) $12 
D) $10

Quizplus · Accepted Answer

Public goods are characterized by their non-excludability and non-rivalrous consumption. The market price for a public good is determined by summing the individual willingness to pay at the given quantity. At a quantity of 3, the total willingness to pay is $14 ($4 + $5 + $5), making option B correct.

Explanation: the Following Figure Graphs the Answer