How can the market demand for a public good be determined?
A)By adding up the total private benefits and external benefits that each quantity provides the citizens of a country.
B)By adding up how much each citizen expects to consume at each possible price.
C)By adding up how much each consumer is willing to pay for each unit of the public good.
D)By estimating the value of the benefit that each unit provides and multiplying that by the number of consumers.

Question

Quizplus · Accepted Answer

The market demand for a public good can be determined by adding up how much each consumer is willing to pay for each unit of the public good. This is because public goods are non-excludable and non-rivalrous, so individuals cannot be excluded from consuming them and the consumption of one person does not diminish the consumption of another. Therefore, the value of the public good is based on how much each consumer is willing to pay for it, which can be added up to determine the overall market demand.

How Can the Market Demand for a Public Good Be