There are 20 residents in the village of Towneburg. The size of the village's annual fireworks display depends upon the number of shells that are fired off. Each resident's demand for fireworks is shown below. The total cost of the fireworks display is $1,000 plus $10 per shell. What is the vertical intercept of the village's demand curve for fireworks?

Question

There are 20 residents in the village of Towneburg. The size of the village's annual fireworks display depends upon the number of shells that are fired off. Each resident's demand for fireworks is shown below. The total cost of the fireworks display is $1,000 plus $10 per shell.  What is the vertical intercept of the village's demand curve for fireworks?

Quizplus · Accepted Answer

The demand curve for a public good is found by vertically summing individual demand curves. Given that there are 20 residents, the vertical intercept is $50 × 20 = $1,000.

There Are 20 Residents in the Village of Towneburg