Asked by Muhammad Altaf on Jun 29, 2024

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A demand curve for a public good is determined by

A) summing vertically the individual demand curves for the public good.
B) summing horizontally the individual demand curves for the public good.
C) combining the amounts of the public good that the individual members of society demand at each price.
D) multiplying the per-unit cost of the public good by the quantity made available.

Public Good

A public good is a commodity or service that is made available to all members of a society, typically by the government, without directly charging consumers for its consumption. These goods are characterized by their non-excludability and non-rivalrous nature.

Demand Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity demanded by consumers.

  • Understand how the demand curve for public goods is determined and why it differs from private goods.
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ZK
Zybrea KnightJul 06, 2024
Final Answer :
A
Explanation :
The demand curve for a public good is determined by summing vertically the individual demand curves for the public good. This is because public goods are non-excludable and non-rivalrous, meaning that one person's consumption does not reduce the amount available for others, and it's not possible to exclude others from using the good. Therefore, the total willingness to pay at each price level is the sum of the individual willingness to pay, which is represented by vertical summation.