How does the construction of a market demand curve for a private good differ from that for a public good?
A)There is no difference; in both cases the demand curve is determined by adding up the price each consumer is willing to pay for each quantity of the good.
B)There is no difference; in both cases the demand curve is determined by adding up the quantities demanded by each consumer at each price.
C)The market demand curve for a private good is determined by adding up the quantities demanded by each consumer at each price but the market demand curve for a public good is determined by adding up the price each consumer is willing to pay for each quantity of the good.
D)The market demand curve for a private good is determined by adding up the price each consumer is willing to pay for each quantity of the good but the market demand curve for a public good is determined by adding up the quantities demanded by each consumer at each price.

Question

Quizplus · Accepted Answer

For private goods, the market demand curve is constructed by horizontally summing the quantities each consumer is willing to buy at each price. For public goods, the market demand curve is constructed by vertically summing the prices each consumer is willing to pay for each quantity.

How Does the Construction of a Market Demand Curve for a Private