### Understanding Market Demand for Fireworks DisplayA small town provides a fireworks display, regarded as a public good, every Fourth of July. For simplicity, assume the town has only two residents: Hayden and Madison. Their demands for the fireworks display are illustrated in the graph on the right. The task is to construct the market demand curve for this public good.#### Instructions:1. **Use the line drawing tool** to draw the market demand curve ($D_{\text{Market}}$) for the fireworks display.2. Properly label this line on the graph.**Carefully follow the instructions above, and only draw the required objects.**#### Graph Analysis:- **Axes**: The horizontal axis represents the quantity of fireworks (number of fireworks), ranging from 0 to 15. The vertical axis represents the price per firework in dollars, ranging from $0 to $8.- **Individual Demand Curves**: - **D$_{\text{Hayden}}$**: This is the demand curve for Hayden. It starts at approximately $3.50 for zero fireworks and slopes downwards, ending at about 14 fireworks. - **D$_{\text{Madison}}$**: This is Madison's demand curve. It starts at about $4.00 for zero fireworks and slopes downwards, reaching around 12 fireworks.- **Objective**: Combine these individual demand curves to form the market demand curve, which represents the sum of quantities demanded by Hayden and Madison at each price level.Remember to label the new market demand curve appropriately on the graph.

Public goods are nonrival consumption goods, that is, everyone can enjoy the benefits of public good…

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 to the right. Construct the market demand curve for this public good. 8.00- 7.50- 7.00- 6.50- 6.00– 5.50- 5.00- 4.50- Use the line drawing tool to draw the market demand curve (DMarket) for the fireworks display. Properly label 4.00- DMadison 3.50어 Hayden 3.00- 2.50- e 2.00- this line. Carefully follow the instructions above, and only draw the required objects. 1.50- 1.00 Price (dollars per firework)

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 to the right. Construct the market demand curve for this public good. 8.00- 7.50- 7.00- 6.50- 6.00– 5.50- 5.00- 4.50- Use the line drawing tool to draw the market demand curve (DMarket) for the fireworks display. Properly label 4.00- DMadison 3.50어 Hayden 3.00- 2.50- e 2.00- this line. Carefully follow the instructions above, and only draw the required objects. 1.50- 1.00 Price (dollars per firework)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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