Assume There Are Two People in a Society

question 163

Multiple Choice

Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person B is willing to pay $160 to have one unit of a public good produced and $140 to have two units produced. As a result, society would be willing to pay a price of ________ of this public good.

• A) $300 for 1 unit
• B) $200 for 3 units
• C) $200 for 1 unit
• D) $160 for 5 units

---

Definitions:

Fluid Wave

A physical examination technique used to detect the presence of significant amounts of fluid in the abdomen.

Hepatomegaly

An abnormal enlargement of the liver, which can be an indicator of various diseases or conditions.

Dullness

A lack of sharpness or vibrancy in sensation, often used in medical contexts to describe a type of sound heard during percussion of the body that suggests an underlying condition or abnormality.