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Answer the Question on the Basis of the Following Information

Question 31

Multiple Choice

Answer the question on the basis of the following information for a public good.Pa and Pb are the prices that individuals A and B are willing to pay for the last unit of a public good,rather than do without it.These people are the only two members of society. 12345Paa$2100Pab$54321\begin{array}{c}\begin{array}{c}\underline{\text {Q }}\\1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\mathrm{Pa}_{\mathrm{a}} }\\\$ \\2\\1\\0\\0\end{array}\begin{array}{c}\underline{\mathrm{Pa}_{\mathrm{b}} }\\\$ 5 \\4 \\3 \\2 \\1\end{array}\end{array}
Refer to the data.Suppose government has already produced 4 units of this public good.The amount individual B is willing voluntarily to pay for the 4th unit is:


A) $14.
B) $5.
C) $2.
D) $0.

Correct Answer:

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