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# Market demand on the assumption that goods are private

On the basis of three individual demand schedules on the next page, and assuming these three people are the only ones in the society, determine (a) the market demand on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Explain the differences, if any, in your schedules.

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#### Solution Preview

On the basis of three individual demand schedules on the next page, and assuming these three people are the only ones in the society, determine (a) the market demand on the assumption that the good is a private good and (b) the collective demand schedule on the assumption that the good is a public good. Explain the differences, if any, in your schedules.

Individual 1 Individual 2 Individual 3
P\$ Qd P\$ Qd P\$ Qd
8 0 8 1 8 0
7 0 7 2 7 0
6 0 6 3 6 1
5 1 5 4 5 2
4 2 4 5 4 3
3 3 3 6 3 4
2 4 2 7 2 5
1 5 1 8 1 6

The difference when summing the demands for a private good and for a public good is that, when summing for a private good, we need to sum the quantities demand ...

#### Solution Summary

The difference when summing the demands for a private good and for a public good is reinforced.

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