Business, 01.07.2020 15:01 peaceouthjkdrb2398
Pa and Pb represent the prices that citizens (a) and (b), the only two people in this nation, are willing to pay for additional units of quantity(Qc) of the public good. Qs represents the quantity of the public good supplied by the government at each of the collective prices.
Refer to the information below. if the collective willingness to pay for an additional unit of this public good is $6, then the collective quantity demanded will be :.
Qc Pa Pb Qs
1 $4 $5 5
2 3 4 4
3 2 4 3
4 2 3 2
5 1 2 1
a) 4 units and the socially optimal quantity supplied will be 2 units
b) 1 unit and the socially optimal quantity supplied will be 5 units
c) 2 units and the socially optimal quantity supplied will be 4 units
d) 3 units and the socially optimal quantity supplied will be 3 units
Answers: 3
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Pa and Pb represent the prices that citizens (a) and (b), the only two people in this nation, are wi...
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