Use the data below to derive the demand schedule for a publi

Use the data below to derive the demand schedule for a public good. Responses go into the gray shaded cells. Demang Individual #1 Individual #2 A Public Good Individual #3 Qd Price Qd Price Qd Price Price Qd $8 $8 6 6 6 4 4 4 4 4 4

Solution

A demand schedule is very easy to create, if we have the details of the demands of a good at different price levels for the individuals. In the above case, to drive a demand schedule we would simply add all the quantities demanded of the good at their respective price levels.

So, we have the demand schedule as follows:

Demand

A Public Good

Price

Qd

19

1

16

2

13

3

10

4

7

5

4

6

2

7

1

8

The optimal quantity of this product would be the point where demand equals supply and also the price must be equal, which is at Quantity of 4 at Price of $10.

So, the optimal quantity is 4 units.

I hope my solution solves your query.

Demand
A Public Good
Price	Qd
19	1
16	2
13	3
10	4
7	5
4	6
2	7
1	8