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How does the construction of a market demand curve for a private good differ from that for a public good?

Frost

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How does the construction of a market demand curve for a private good differ from that for a public good?

How does the construction of a market demand curve for a private good differ from that for a public good?

▸

The market demand curve for a private good is determined by adding up the quantities demanded by each consumer at each price but the market demand curve for a public good is determined by adding up the price each consumer is willing to pay for each quantity of the good.

▸

There is no difference; in both cases the demand curve is determined by adding up the price each consumer is willing to pay for each quantity of the good.

▸

There is no difference; in both cases the demand curve is determined by adding up the quantities demanded by each consumer at each price.

▸

The market demand curve for a private good is determined by adding up the price each consumer is willing to pay for each quantity of the good but the market demand curve for a public good is determined by adding up the quantities demanded by each consumer at each price.

Textbook

InMicro

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

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