Suppose Scott's demand for a public good is P = 7 - .3Q and Mike's demand is P = 10 - 1.5Q.The equation for social demand for the public good is

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Quizplus · Accepted Answer

To calculate the social demand for a public good, we simply add up the individual demands at each quantity. The individual demands are P=7-0.3Q for Scott and P=10-1.5Q for Mike. Adding these two equations, we get P=17-1.8Q, which is the social demand curve for the public good. Therefore, the best choice is B.

Suppose Scott's Demand for a Public Good Is P =