The market demand curve for a public good is found by
A)horizontally summing the individual demand curves.
B)vertically summing the individual demand curves.
C)horizontally summing the firm's demand curves.
D)vertically summing the firm's demand curves.

Question

Quizplus · Accepted Answer

Since a public good is non-rival and non-excludable, the demand for it is based on the total benefits that all individuals receive from its consumption. Therefore, the market demand curve is found by vertically summing the individual demand curves.

The Market Demand Curve for a Public Good Is Found