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Answer the Next Question on the Basis of the Following

Question 127

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Answer the next question on the basis of the following information is for public good.Pa and Pb represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Qc) of the public good.Qs represents the quantity of the public good supplied by government at each of the collective prices.Refer to the information below.If the collective willingness to pay for an additional unit of this public good is $6, then the collective quantity demanded will be: Answer the next question on the basis of the following information is for public good.P<sub>a</sub> and P<sub>b</sub> represent the prices that citizens (a)  and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q<sub>c</sub>)  of the public good.Q<sub>s</sub> represents the quantity of the public good supplied by government at each of the collective prices.Refer to the information below.If the collective willingness to pay for an additional unit of this public good is $6, then the collective quantity demanded will be:   A) 1 unit and the socially optimal quantity supplied will be 5 units. B) 2 units and the socially optimal quantity supplied will be 4 units. C) 3 units and the socially optimal quantity supplied will be 3 units. D) 4 units and the socially optimal quantity supplied will be 2 units.


A) 1 unit and the socially optimal quantity supplied will be 5 units.
B) 2 units and the socially optimal quantity supplied will be 4 units.
C) 3 units and the socially optimal quantity supplied will be 3 units.
D) 4 units and the socially optimal quantity supplied will be 2 units.

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