Solutions Economics

On the basis of the three individual demand schedules below, and assuming these three people are the

Question: On the basis of the three individual demand schedules below, and assuming these three people are the only ones in the society, determine (a) the market demand schedule 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
*Price*	*Q_d*	*Price*	*Q_d*	*Price*	*Q_d*


$8 7 6 5 4 3 2 1	0 0 0 1 2 3 4 5	$8 7 6 5 4 3 2 1	1 2 3 4 5 6 7 8	$8 7 6 5 4 3 2 1	0 0 1 2 3 4 5 6