What Is One Difference Between the Demand for a Private

question 40

Multiple Choice

What is one difference between the demand for a private good and that for a public good?

• A)With a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
• B)With a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
• C)With a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realises the same amount of benefit from consuming the product.
• D)The marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.

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Definitions:

Ask Price

The minimum price a seller is willing to accept for an asset or security.

Sell

The act of transferring ownership of a security or asset from a seller to a buyer in exchange for cash or other forms of payment.

Security

A financial instrument representing an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Dark Pools

Private financial forums or exchanges for trading securities not accessible by the investing public, often used by large institutions to avoid impacting the market with large orders.