Theoretically, the market demand for a public good is found by
a. vertically addingthe MEC and MPCfunctions
b. overcomingfree-ridership and vertically summingthe price responses for each quantity
c. adding horizontally the marginal benefits received by each consumer at every price level
d. summing the quantities each person is willing and able to buy at each and every price
b. overcomingfree-ridership and vertically summingthe price responses for each quantity
You might also like to view...
Inflation leads to ________
A) increased variability of relative prices only when it is anticipated B) increased variability of relative prices only when it is unanticipated C) increased variability of relative prices whether inflation is anticipated or not D) lower variability of the general price level only when it is very high E) none of the above
Which of the following has not occurred in the United States over the last two decades?
A. A fall in real wages B. An increase in labor-force participation C. Growth in service sector employment D. A decrease in the wage differentials between colleges grads noncollege grads.