How does the construction of a market demand curve for a private good differ from that for a public good?
A) 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.
B) 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.
C) There is no difference; in both cases the demand curve is determined by adding up the quantities demanded by each consumer at each price.
D) 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.
D
You might also like to view...
If the public switches from using cash for most transactions to using checks instead, then all else equal, the money supply will:
A. not change. B. decrease. C. either increase or decrease. D. increase.
A commercial bank like Comerica creates money by
A) making loans. B) selling corporate bonds. C) earning profits. D) printing paper money.
Some amount of every security in existence is held in the hypothetical __________ portfolio
A) perfect B) market C) systematic D) nonsystematic
Passive policy advocates rely on the economy's natural ability to correct itself in case of unemployment because of: a. the lack of any real concern for those who have no jobs
b. the conviction that unemployment is relatively harmless. c. the belief that active economic policy is likely to be either ineffective or harmful. d. the desire to await further economic data before intervening. e. the belief in the law of diminishing returns.