A small town provides a fireworks display, which is a public good, every fourth of July. For simplicity, assume the town only has two residents: Hayden and Madison. Their demands for the fireworks display are illustrated in the figure. Determine the market demand curve for this public good. The market demand curve should be downward sloping. In this example, the market will demand 2 fireworks at a price of and the market will demand 14 fireworks at a price of (Enter your responses rounded to two decimal places.) Price (dollars per firework) 8.00- 7.50- 7.00- 6.50- 6.00- 5.50- 5.00- 4.50 4.00- 3.50- 3.00- 8 2.50 à 2.00 1.50- 1.00- 0.50- 0.00+ Madison Hayden 2 10 12 Quantity (number of fireworks) 14 16

A small town provides a fireworks display, which is a public good, every fourth of July. For simplicity, assume the town only has two residents: Hayden and Madison. Their demands for the fireworks display are illustrated in the figure. Determine the market demand curve for this public good. The market demand curve should be downward sloping. In this example, the market will demand 2 fireworks at a price of and the market will demand 14 fireworks at a price of (Enter your responses rounded to two decimal places.) Price (dollars per firework) 8.00- 7.50- 7.00- 6.50- 6.00- 5.50- 5.00- 4.50 4.00- 3.50- 3.00- 8 2.50 à 2.00 1.50- 1.00- 0.50- 0.00+ Madison Hayden 2 10 12 Quantity (number of fireworks) 14 16

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Answer parts D And E