Which of the following is true of a public good?
A) The demand curve for a public good is clearly defined because each consumer consumes the same quantity of the good.
B) The demand curve for a public good is clearly defined because each individual pays the same price.
C) The demand curve for a public good may not exist because individuals can consume the good without being forced to pay a market price for the good.
D) The supply curve of a public good may not exist because individuals can consume the good without being forced to pay a market price for the good.
E) The supply curve of a public good is perfectly elastic as a small increase in the price leads to an infinite increase in the supply of the good.
Correct Answer:
Verified
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