The Following Table Shows the Quantity Demanded of a Public

question 12

Essay

The following table shows the quantity demanded of a public good at different price levels by John and Elizabeth. $$\begin{array} { l c c } \text { Price } & \ { \text { Quantity Demanded } } \\& \text { John } & \text { Elizabeth } \\0 & 100 & 100 \\0.5 & 90 & 80 \\1 & 80 & 60 \\1.5 & 70 & 40 \\2 & 60 & 20 \\2.5 & 50 & 0 \\3 & 40 & 0 \\3.5 & 30 & 0 \\4 & 20 & 0 \\4.5 & 10 & 0 \\5 & 0 & 0\end{array}$$ Answer the following questions:
(1) Draw the demand curve for both John and Elizabeth.
(2) Draw the market demand for this public good.
(3) If the marginal cost of providing one unit of the good is $3 per unit, what is the socially optimal amount of the public good (show this on the same graph)?
(4) In this case, how much will each individual be willing to pay?

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.

Variance

A measure of the spread of numbers in a data set, indicating how far each number in the set is from the mean.

Board Configurations

The structure and arrangement of a board of directors or trustees, including the number of members, their roles, and how they are chosen.

Sample Sizes

The number of observations or elements selected from a population to conduct statistical analysis.