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The Following Information Is for a Public Good

Question 129

Multiple Choice

The following information is 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.If this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be: The following information is for a public good.P<sub>a</sub> and P<sub>b</sub> 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.If this good were a private good instead of a public one, the total quantity demanded at a $3 market price would be:   A) 2 units. B) 3 units. C) 6 units. D) 4 units.


A) 2 units.
B) 3 units.
C) 6 units.
D) 4 units.

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