How Does the Construction of a Market Demand Curve for a Private

question 247

Multiple Choice

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)There is no difference; in both cases the demand curve is determined by adding up the quantities demanded by each consumer at each price.
• C)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)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.

---

Definitions:

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of growth over a specific period of time.

Capital Flight

The transfer of savings from developing countries to industrially advanced countries to avoid government expropriation, taxation, or higher rates of inflation, or simply to realize greater returns on financial investments.

Export Earnings

The revenue a country or business receives from selling goods and services to other countries.

External Debts

These are funds borrowed by one country from foreign lenders, including private banks, governments or international financial institutions.